For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com DJIA 23439.70 À 17.49 0.1% NASDAQ 6757.60 À 0.1% WSJ.com TUESDAY, NOVEMBER 14, 2017 ~ VOL. CCLXX NO. 115 * * * * * STOXX 600 386.13 g 0.7% 10-YR. TREAS. g 1/32 , yield 2.400% OIL $56.76 À $0.02 GOLD $1,277.30 À $4.90 Powerful Earthquake Near Iran-Iraq Border Kills More Than 400 What’s News Business & Finance ozens of banks received the biggest signal yet that they may soon be freed from some of the most onerous rules put in place after the financial crisis, as senators from both parties agreed to a plan to ease regulations. A1 D Qualcomm rejected Broadcom’s $105 billion offer, setting up a showdown between the chip makers. B1 Google faces a Missouri probe into whether the internet giant’s business practices violate state laws. B1 AB InBev is shuffling its North American leadership as the brewer struggles to end a slump in Bud sales. B1 Venezuela was ruled by S&P to be in default on a missed interest payment, further pressuring the nation. A10 SoftBank’s bid to take a stake of up to $10 billion in Uber marks a bet on the future of the car industry. B4 Brookfield confirmed it made a $14.8 billion offer to buy the 66% of mall owner GGP it doesn’t already own. B3 The Dow edged up 17.49 points to 23439.70 following a flurry of corporate news. B10 World-Wide GOP leaders stepped up efforts to block Moore from taking a Senate seat, as new allegations of sexual misconduct surfaced. A3 Donald Trump Jr. was in contact with WikiLeaks during the 2016 campaign, according to an email obtained by The Wall Street Journal. A4 Treasury chief Mnuchin said the Trump administration wouldn’t support tax legislation with a corporate tax rate of more than 20%. A6 Trump nominated Alex Azar, an ex-Lilly executive who has criticized the health law, to be HHS secretary. A2 Rescue efforts were under way after a strong earthquake near the border between Iraq and Iran killed at least 414 people. A10 The Supreme Court agreed to hear a challenge by antiabortion pregnancy centers to a California law. A4 The Trump administration can implement part of a travel ban while litigation over the policy continues, an appeals court said. A4 Trump and Philippine leader Duterte found common ground during their meeting, but skirted difficult issues. A8 Nearly half of U.S. adults have high blood pressure, according to new guidelines that lower the risk threshold. A3 The FDA approved a digital drug, an antipsychotic pill that signals smartphones once it reaches the gut. B4 Journal Report Nuclear power’s future in the U.S. Energy, R1-R6 CONTENTS Business News.. B3,5 Capital Journal...... A4 Crossword.............. A17 Heard on Street.. B11 Journal Report.. R1-6 Life & Arts....... A15-17 Markets............. B10-11 Opinion.............. A19-21 Sports....................... A18 Technology............... B4 U.S. News............. A2-6 Weather................... A17 World News..... A8-13 > s Copyright 2017 Dow Jones & Company. All Rights Reserved YEN 113.62 Senators Support Rollback Of Bank Oversight By Andrew Ackerman, Ryan Tracy and Christina Rexrode TRAGIC TOLL: Iranian soldiers on Monday carried the body of a victim of the temblor, which struck the area late Sunday. ‘The magnitude of the disaster is huge,’ Esmail Najjar, the head of Iran’s National Disaster Management Organization, said on state television. A10 GE Takes Knife to Dividend Industrial giant cuts payout by half and warns of ‘reset’ year; shares hit 5-year low BY THOMAS GRYTA General Electric Co.’s new leader outlined a restructuring plan that will slash the annual dividend by $4 billion and streamline the industrial giant’s operations, but warned investors it will take years to fix some of the company’s businesses and for profits to begin to improve. GE Chief Executive John Flannery lowered earnings targets for 2018 and cautioned that, even in 2019, conditions will be difficult, especially in the company’s biggest unit, GE Power. He laid out a future for three core markets—power, aviation and health care—and said the company would look to shed smaller divisions such as transportation and lighting. GE is “going to be a smaller Core Focus General Electric outlined a restructuring plan under which it will focus on the power, aviation and health-care markets and may shed noncore businesses. Core segments 2017 nine-month revenue 2018 outlook* Power Aviation $26.6 billion down 10% $20.2 up 7-10% $13.7 Healthcare up 3% up 7-10% $7.4 Renewable energy Non-core segments $11.5 billion Oil & gas Transportation Lighting $3.2 down 15% up 5% $1.4 *Estimates for organic revenue growth Source: the company business, a simpler business” but 2018 is going to be “a reset year,” he told investors at a meeting Monday. The presentation followed a strategic review after the GE veteran took over the top job on Aug. 1. up 2-5% THE WALL STREET JOURNAL. The moves stop short of a breakup or more-radical restructuring of the 125-year-old company that some analysts had called for, though Mr. Flannery left open the possibility of further portfolio changes. “It is Hobby Lobby Scion Amassed Relics—Now They’re Tainted for the market to decide,” the new CEO said Monday. “Unless I show results, it isn’t going to matter.” Shares of GE tumbled after his presentation, dropping 7.2% to end Monday’s trading session at $19.02, its lowest close in five years and its worst single-day drop since the financial crisis. The stock has declined 40% this year, missing out on a broad stock-market rally. Some investors said they hoped for more-aggressive action and a shorter timeline. “They didn’t lay out as much as we were expecting to see,” said Janna Sampson, cochief investment officer of OakBrook Investments, which owned 1.1 million shares at the end of September. She said she was expecting a dividend cut but was looking for the company to make a bigger move to stimulate the share price. She said she is concerned that the Please see GE page A13 Heard on the Street: GE light bulb finally goes on.............. B11 The bipartisan Senate agreement released Monday would relieve small and regional lenders from a number of restrictions meant to limit the damage firms could cause to the economy in the event of another crisis. In what would be the biggest step to ease the financial rule book since Republicans took control of Washington, the proposal could cut to 12 from 38 the number of banks subject to heightened Federal Reserve oversight by raising a key regulatory threshold to $250 billion in assets from $50 billion. The legislation also would ease red tape affecting credit unions and community banks, allowing them to lend more, supporters said. The deal will “significantly improve our financial regulatory framework and foster economic growth by right-sizing regulation,” said Senate Banking Committee Chairman Michael Crapo (R., Idaho), who brokered the agreement between Republicans and a group of moderate Democrats. Monday’s deal shows Republicans’ determination to ease regulations that they say constrain U.S. economic Please see BANKS page A6 Political Opening Gerald F. Seib: Opportunity is test for Democrats.... A4 Donald Trump Jr. was in contact with WikiLeaks... A4 Mnuchin says no give on 20% tax rate..................... A6 GOP Leaders Call on Moore to Quit Steve Green’s collection, intended for the new Washington, D.C., Bible museum his family built, has been hit by smuggling allegations BY KELLY CROW Hobby Lobby President Steve Green was wonder-struck as he walked into a Dubai hotel conference room filled with historical treasures worthy of Ali Baba. Antiquities lay piled on tables and peeked from boxes: 4,000-year-old clay tablets that tracked Sumerian wheat sales; stone cylinders that ancient families used to imprint their signatures onto fresh clay documents. The artifacts were samples from a 5,500piece collection that dealers had offered to sell Mr. Green for $2 million. He was in Dubai with a paid adviser in the summer of 2010, seeking relics to install in what would become the $500 million Museum of the Bible in Washington, D.C. After months of back and forth, Mr. Green’s family business paid $1.6 million for the lot. Mr. Green thought he was getting a bargain. Instead, the deal cost Hobby Lobby another $3 million in July to settle a government lawsuit alleging the goods were smugPlease see BIBLE page A14 China Leads Charge As IPOs Roar Back A flood of Chinese companies is driving the biggest world-wide surge of initial public offerings in a decade. More than 1,450 companies globally have gone public so far in 2017, putting this year on By Steven Russolillo in Hong Kong and Corrie Driebusch in New York track to become the busiest for new listings since 2007, according to Dealogic data through Friday. Roughly two-thirds of the IPOs were in the Asia-Pacific region, which has roared past the U.S. to become the dominant region for new stock listings. Overall, the deals raised more than $170 billion globally, compared with the roughly 950 deals in the same period last year that raised around $120 billion. While listings have picked up sharply, dollar volume is only the third highest over the past decade and well below the boom years in 2006 and 2007 before the financial crisis. A pickup in economies across Asia has led more companies to seek capital for expansion and growth by selling stock publicly. Increasingly, much of that capital is coming from investors with newfound wealth—particularly in China, which has powered much of the IPO surge. Please see IPOS page A6 James Mackintosh: For small U.S. firms, IPOs fade.............. B1 MARVIN GENTRY/REUTERS A flood of Chinese firms is driving the biggest worldwide surge of initial public offerings in a decade. A1 EURO $1.1669 Dozens of banks received the biggest signal yet that they may soon be freed from some of the most onerous rules put in place after the financial crisis, as lawmakers from both parties agreed to a plan that would enact sweeping changes to current law. ABEDIN TAHERKENAREH/EPA/SHUTTERSTOCK GE’s new CEO outlined a restructuring plan that will slash the annual dividend by $4 billion and streamline the industrial giant’s operations. Shares hit a five-year low. A1 HHHH $4.00 Senate Majority Leader Mitch McConnell and other Republican lawmakers urged Roy Moore to abandon his Senate bid, as an additional woman accused the former judge of sexual misconduct. A3 Your Ph.D. Thesis Sounds Funky! Let’s Dance to It i i i Ph.D. students shoot videos to make esoteric research relatable BY MELISSA KORN An esoteric doctoral thesis is not the sort of thing you’d bring up at Thanksgiving dinner. One doesn’t chitchat about prosthetic heart valves in supermarket checkout lines or dive into mathematical representations of matrices on blind dates. But there’s one thing that weird, impenetrable scientific research has proven to be perfect for: dance videos. Tee Pamon, a postdoctoral fellow at Stony Brook University in New York, longed to make his research on vibration-based therapies for musculoskeletal disorders “exciting for people who aren’t already excited about musculoskeletal disorders.” To achieve this breakthrough, he rewrote the lyrics to “Good Vibrations” by Marky Mark and the Funky Bunch, donned a throwback NBA jersey, performed a series of hip-hop maneuvers, cut it into a two-minute video and posted it on YouTube. Dancing surgeon Another doctoral student choreographed a video in which a woman dressed in red (to signify a blood cell) hula-hoops around two salsa dancers dressed as a cow and a pig. A Ph.D. candidate in mathematics brought her thesis to life by putting on a black leotard and hanging upside down from a rope. Rather than bore friends and family with impenetrable jargon, hundreds of scientists over the past decade have shot videos for the Dance Your Ph.D. competition, sponsored by Science magazine and the American Association for the Advancement of Science. The contest offers a $500 prize to winners in biology, physics, Please see DANCE page A14 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A2 | Tuesday, November 14, 2017 * * THE WALL STREET JOURNAL. U.S. NEWS Ex-Eli Lilly Official Is Picked to Run HHS BY STEPHANIE ARMOUR AND LOUISE RADNOFSKY President Donald Trump announced he was nominating Alex Azar as secretary of health and human services, picking a former George W. Bush administration official who has criticized the Affordable Care Act to lead the agency that is tasked with carrying out the health law. Mr. Azar, who served as deputy secretary of HHS before becoming president of an Eli Lilly & Co. affiliate, would inherit a $1 trillion agency charged with overseeing the 2010 health law in the wake of congressional Republicans’ failed effort to repeal it. If confirmed, Mr. Azar would succeed Tom Price, who resigned in September over his use of private-jet and military flights. Mr. Azar had been considered the front-runner for the position, but the timing of the announcement on Monday came as a surprise when Mr. Trump made it on Twitter on the final leg of an Asian trip. “Happy to announce, I am nominating Alex Azar to be the next HHS Secretary. He will be a star for better health care and lower drug prices!” Mr. Trump wrote in the tweet. The choice of a detail-oriented lawyer familiar with the workings of the federal government drew praise from Republicans, who said that Mr. Azar would bring significant institutional knowledge to the job. Some consumer groups criticized Mr. Azar’s pharmaceuticals background, saying he might neglect to focus on lowering drug costs. Democrats also said they would press broad objections to the administration’s desire to overturn the ACA during his confirmation process. Mr. Azar, 50 years old, has already been confirmed twice by the Senate for appointments at HHS. He has extensive knowledge of regulatory process, cutting his teeth at HHS by implementing the Bush administration’s flagship health-care effort, the Medicare Part D prescription-drug program. Since then, he has called for limited federal involvement in health policy and voiced support for key conservative ideas. Mr. Azar couldn’t be reached to comment. In a July interview with Fox Business, Mr. Azar expressed support for a Senate Republican bill that sought to dismantle major portions of the ACA, saying, “The status quo is bad—any change can only be a good thing.” Mr. Azar got his start in Washington with a clerkship for Supreme Court Justice Antonin Scalia. He also worked for Independent Counsel Kenneth Starr, who investigated President Bill Clinton, calling Mr. Starr “my mentor” in a Yale Law alumni profile. After working for Mr. Bush’s presidential campaign in 2000, Mr. Azar became general counsel at HHS. At the end of Mr. Bush’s first term, Mr. Azar was asked to stay on as deputy secretary. His smooth Senate confirmation back then could be an asset for Mr. Trump now, given the turmoil over the administration’s intentions to dismantle the ACA. Democrats on Monday promised a challenging confirmation process, though their ability to block Mr. Azar would be limited, because Republicans hold a 52-48 advantage in the Senate. Drug Prices Rose at Lilly Alex Azar’s Career Most recent job: president of Eli Lilly & Co.’s U.S. unit, the company’s largest. Education: Dartmouth College, 1988 A.B. degree, summa cum laude; Yale Law School, 1991. u Clerked, U.S. Supreme Court Justice Antonin Scalia. u Associate independent counsel in office of Whitewater Independent Counsel Kenneth W. Starr. u Member of Washington, D.C., law firm Wiley, Rein and Fielding, until 2001. u HHS general counsel, then deputy secretary, until 2007. President Donald Trump said in a tweet Monday that his nominee for secretary of Health and Human Services will be a “star” for his ability to lower drug prices, but during Alex Azar’s tenure as an Eli Lilly & Co. executive prices rose dramatically for some of the company’s top drugs. Mr. Azar, who served as a deputy HHS secretary in the George W. Bush administration, joined the Indianapolis company in 2007 as senior vice president of corporate affairs and communications. He rose through the ranks and in 2012 was promoted to president of Lilly’s U.S. pharmaceuticals unit. Mr. Azar oversaw sales teams for drugs including the erectile dysfunction treatment Cialis and the blood thinner Effient. He also oversaw negotiations with health insurance plans aimed at persuading them to pay for Lilly’s products. While Mr. Azar headed the U.S. business, Lilly came under criticism for raising prices for some of its drugs, including a more than doubling in the U.S. list price for Humalog insulin between 2011 and 2016. Lilly has said it pays undisclosed rebates and offers discounts to health insurers and pharmacy-benefit managers that reduce the cost of its products, including Humalog. In 2016, Lilly said the average U.S. list price across all of its drugs rose 14%, but the average net price after rebates and discounts went up by just 2.4%. Those averages can obscure significant price boosts on individual drugs. Moreover, a growing number of patients don’t benefit from the discounts, because they have high-deductible health-insurance plans that require them to pay the full list price for drugs, or a portion of it, for at least part of the year, until they meet their deductibles. That helped drive public anger about insulin prices. Other insulin makers, including Sanofi SA and Novo Nordisk A/S, also were criticized for raising prices substantially. —Peter Loftus U.S. WATCH HEALTH CARE Hospital Group Sues Over Subsidy Cuts The American Hospital Association and other powerful industry groups have sued the Trump administration to stop $1.6 billion in cuts to lucrative drug subsidies for some hospitals. The lawsuit, filed in U.S. District Court for the District of Columbia, alleges the U.S. Department of Health and Human Services exceeded its authority with cuts to the subsidy program. The suit asks the court to stop the cuts until the case is settled. The program allows hospitals to buy drugs at steep discounts. Medicare historically has paid hospitals slightly more than the average sales price for the drugs, and hospitals kept the difference. Starting in January, Medicare plans to slash what it pays hospitals eligible for the program, under a new rule the administration released this month. Carlos Angulo, an attorney for the AHA and other plaintiffs, said Congress intended Medicare to pay more than what hospitals paid for the drugs, allowing hospitals to use the savings to benefit local communities. The subsidy was first created more than two decades ago to assist hospitals with large numbers of uninsured patients. But the generous subsidies raised concerns that hospitals might use pricey drugs unnecessarily. MICHAEL HOLAHAN/ASSOCIATED PRESS We perfect each part of this watch by hand. Even the ones that you can’t see. READY TO LAUNCH: Rebekah Adams, 16, preparing a tomato for launch from her homemade device during a North Augusta High School AP Physics competition in South Carolina on Monday. HHS officials didn’t respond to a request for comment. —Melanie Evans PUERTO RICO Governor Seeks $94.4 Billion in Funds Puerto Rico’s governor on Monday asked the federal government for $94.4 billion as the island struggles to recover from Hurricane Maria, with much of the U.S. territory without power and thousands still homeless. Ricardo Roselló also urged Congress to adopt a tax over- haul plan that addresses Puerto Rico’s specific needs to avoid an exodus of the companies that generate 42% of the island’s gross domestic product. The governor said during a news conference that he will formally make his request to the White House and Congress, along with a report with a detailed assessment of damage. The governor is seeking $46 billion to restore housing through the Community Development Block Grant program, $30 billion within the Federal Emergency Management Agency to recover critical infrastructure and $17.9 CORRECTIONS AMPLIFICATIONS Jodie Foster cast Mel Gibson in her film “The Beaver” before a phone-call recording of Mr. Gibson making misogynistic and racist remarks was leaked in 2010. A Life & Arts article Friday about Mr. Gibson incorrectly said his casting followed the leak. Readers can alert The Wall Street Journal to any errors in news articles by emailing firstname.lastname@example.org or by calling 888-410-2667. THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193--2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. Letters to the Editor: Fax: 212-416-2891; email: email@example.com NEED ASSISTANCE WITH YOUR SUBSCRIPTION? By web: customercenter.wsj.com; By email: firstname.lastname@example.org By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat REPRINTS & LICENSING By email: email@example.com By phone: 1-800-843-0008 GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS billion in other federal grant programs for long-term recovery. Mr. Rosello said his team will create a portal that will allow the public to track the status of the recovery and funds. That is part of an effort to placate concerns after the Puerto Rico Electric Power Authority selected Whitefish Energy Holdings to help rebuild the island’s electrical system, even though the company had just two employees when the hurricane struck. The contract was canceled on Oct. 29 amid bipartisan criticism from members of Congress and a request by Mr. Roselló to void the deal. —Associated Press SOCCER Corruption Trial Begins in New York Lawyers for three former top Latin American soccer officials told a Brooklyn, N.Y., federal jury that international soccer might have been rife with corruption but their clients were unfairly charged. “You’re not here to decide whether foreign soccer is corrupt,” Silvia Piñera-Vazquez, a lawyer for former FIFA Vice President Juan Angel Napout, told jurors in opening statements Monday. “Your sole duty is to decide if Juan Angel Napout was part of a criminal enterprise.” Prosecutors from the Brooklyn U.S. attorney’s office allege that Mr. Napout, who led Paraguay’s soccer federation and Conmebol, the South American soccer federation, accepted bribes and kickbacks in connection with media and marketing rights for international tournaments. The racketeering trial grew out of a federal investigation into alleged widespread corruption in FIFA, soccer’s global governing body. Manuel Burga, the former president of Peru’s soccer federation, and Jose Maria Marin, the former head of Brazil’s soccer federation, are also on trial in Brooklyn. Bruce Udolf, a lawyer representing Mr. Burga, said the government “simply got it wrong.” Charles Allen Stillman, a lawyer representing Mr. Marin, compared his client with a “fill in” player on a youth soccer team, “the youngster standing off to the side, picking up daisies,” unaware of the game going on around him. —Rebecca Davis O’Brien For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | A3 * * * * ©T&CO. 2017 U.S. NEWS Moore Faces GOP Pressure Party leaders move to block Senate nominee as another woman alleges misconduct Republican leaders in Washington stepped up their efforts to block Alabama GOP candidate Roy Moore from taking a Senate seat as a new woman went public with accusations of sexual misconduct by the former judge. A top GOP lawmaker Monday took the extraordinary step of threatening to force Mr. Moore out of the Senate if he fails to quit the race before the Dec. 12 special election. “If he refuses to withdraw and wins, the Senate should vote to expel him, because he does not meet the ethical and moral requirements of the United States Senate,” said Sen. Cory Gardner (R., Colo.), chairman of the party’s Senate campaign arm, which has already cut off a fundraising agreement with Mr. Moore. Earlier in the day, Senate Majority Leader Mitch McConnell (R., Ky.) told reporters he believed the women who had accused Mr. Moore of sexual misconduct and said he was looking for an alternative write-in candidate to face off against Democrat Doug Jones. “I think he should step aside,” Mr. McConnell said. “I believe the women.” LUCAS JACKSON/REUTERS BY JANET HOOK AND NICOLE HONG Beverly Young Nelson, left, made new sex allegations about Roy Moore of Alabama in New York Monday. Mr. McConnell had previously said Mr. Moore should step aside if the allegations prove true, a stance taken by other Republicans, including President Donald Trump. Mr. Moore, who has denied any sexual misconduct, tweeted a response to Mr. McConnell’s comments: “The person who should step aside is @SenateMajLdr Mitch McConnell. He has failed conservatives and must be replaced. #DrainTheSwamp.” Mr. McConnell is scheduled to appear Tuesday at The Wall Street Journal CEO Council’s annual meeting in Washington. Republicans are scrambling because they worry the scan- dal threatens the party’s hold on the seat and could tarnish other Republican candidates in the midterm elections. Even Mr. Moore’s fellow Alabama Republican, Sen. Richard Shelby, said he advised Mr. Moore to drop out. “It’s drip by drip,” Mr. Shelby said. “Everything last week was disturbing, it’s more disturbing today.” New allegations against Mr. Moore surfaced on Monday afternoon, when Beverly Young Nelson said at a news conference in New York that she had been assaulted by Mr. Moore when she was 16 years old. Ms. Nelson spoke about the alleged 1977 encounter at a press conference organized by Gloria Allred, a lawyer who has represented women in other high-profile sexual-assault cases. Ms. Nelson said that Mr. Moore groped her breasts and tried to initiate sex with her in his car. She said the incident left bruises on her neck after she resisted. Afterward, Ms. Nelson said Mr. Moore told her no one would believe her if she informed anyone. Ms. Nelson said she told her sister two years after the incident and her mother four years ago. She also said she told her husband before they got married. The Moore campaign didn’t respond to a request for comment. TIFFANY HARDWEAR 800 843 3269 | TIFFANY.COM GIFTS FOR THE HANDSOME HERO Hypertension Guidelines Broaden Nearly half of all U.S. adults have high blood pressure, according to sweeping new guidelines released Monday that lower the threshold for who is considered at risk of complications from the condition. Most of the people considered newly hypertensive— largely younger Americans— would be urged to eat healthier and exercise more rather than take medicine, according to the guidelines, published by the American Heart Association and the American College of Cardiology. Hypertension, or high blood pressure, has traditionally been defined as 140/90 and above for measures of systolic blood and diastolic blood pressure. About one-third of U.S. adults, roughly 72.2 million people, are considered hypertensive according to that definition. The new guidelines move the threshold for hypertension to a reading of 130/80 and above, a definition that includes about 46% of U.S. adults, or 103.3 million people, according to the authors. Optimal blood pressure is Pressure Points Prevalence of hypertension by gender, race and ethnicity under old and new guidelines Men Women 80% 80% 60 60 40 40 20 20 0 0 20-44 45-54 55-64 65-74 75+ Age Hate crimes across the country rose about 5% in 2016, the second consecutive year in which federal authorities tallied an increase in the number of offenses motivated by bias involving race, religion or sexual orientation, according to FBI statistics released Monday. The Federal Bureau of Investigation, relying on reports provided by more than 15,000 law-enforcement agencies, reported 6,121 criminal incidents U.S. Bias Offenses Almost six in ten hate crimes that occurred in 2016 were based on ethnicity. Of those, half were anti-black incidents. Incidents by motivation, 2016 Anti-black 28.7% Race/ ethnicity 57.5% Anti-white 11.5 Religion 21.0 Sexual orientation 17.7 Disability 1.2 Anti-Latino 5.7 Anti-other race 11.3 Gender identity 2.0 Gender bias 0.5 Note: Numbers rounded Source: FBI THE WALL STREET JOURNAL. 20-44 45-54 55-64 65-74 75+ Age Race and ethnicity 33.4% White 47.3 41.0 Black 54.9 24.4 Asian Hispanic 36.7 21.1 34.4 Source: American Heart Association regarded as below 120/80. The systolic number measures pressure in the blood vessels when the heart beats, while diastolic measures blood pres- Hate Crimes Rising, FBI Statistics Show BY DEL QUENTIN WILBER Previous guidelines New guidelines last year were motivated in some form by hate, up from 5,850 in 2015. There were 5,479 such incidents in 2014, the FBI has said. The data show nearly 60% of victims in 2016 were targeted for their race or ethnicity, 21% for their religion, and 17% because of their sexual orientation. Of known offenders, 46% were white and 26% were black. More than 4,700 hate crimes were directed at people in the form of intimidation, assaults, murder and rape. About 2,500 targeted property. The Anti-Defamation League, which fights prejudice and hate crimes, said it was concerned by the increase. “It’s deeply disturbing to see hate crimes increase for the second year in a row,” Jonathan A. Greenblatt, the group’s chief executive, said in a statement. “Hate crimes demand priority attention because of their special impact. They not only hurt one victim, but they also intimidate and isolate a victim’s whole community and weaken the bonds of our society.” FBI data compiled by the ADL show the number of hatecrime incidents has fluctuated over the years. The FBI cataloged more than 9,700 such incidents in 2001, and no fewer than 7,000 hate-crime incidents annually from 2000 to 2008. THE WALL STREET JOURNAL. sure between beats. Hypertension, which increases in prevalence as people age, is a major risk factor for heart attacks, strokes and kid- ney failure. The authors of the guidelines released Monday said the new definition and emphasis on lifestyle changes are meant to help people start managing blood pressure earlier. Most of those affected are younger, the authors said; the prevalence of high blood pressure is expected to triple in men under age 45 and double in women under age 45. “If we want to really capture the risk from high blood pressure and effectively reduce complications...at this time the evidence is strong we need to be taking that lower, to 130/80,” said Paul Whelton, guideline-committee chairman and a professor at Tulane University School of Public Health and Tropical Medicine. The guidelines eliminate a category, “pre-hypertension,” that was used to define systolic blood pressures between 120 and 139 and diastolic numbers between 80 and 89. Now, people with systolic blood pressures between 130 and 139 and diastolic blood pressure between 80 and 89 who are at low risk of cardiac complications would be counseled to lose weight, change diets and exercise more. BURBERRY Sunglasses. $245. " . . .T H E M O S T F L E X I B L E O F T H E U.S. JET MEMBERSHIP PROGRAMS" © Verdura. All rights reserved. BY BETSY MCKAY Conklin & de Decker F LY WITHOUT LIMITS J e t C a r d by Air Partner T H E OR IGI NAL CU R B - LI N K S Vee rdura’s r d u r a ’ s ssig i g n aature t u r e bbracelet r a c e l e t ss,, iinn 118k 8 k gol gold Bracelet B r a c e l e t $ 22 2 2 ,,50 5 0 0 • Wa Watch t c h $ 25,50 25,50 0 The worldwide private jet program that’s all about you. With 100% fully refundable flight credit, no blackout dates, flight hours that never expire and the ability to a p p l y f u n d s t o o n - d e m a n d c h a r t e r. Call us now 888 - 359 - 4349 Or visit www.airpartner.com/wj 74 5 F I F T H AV E N U E , 12 T H F LO O R 212 .758 . 33 8 8 • V E R D U R A .CO M Original O r iigg i n a l ggouache o u a ch e bbyy D Duke uke F Fulco u l c o ddii Ve Verdura e rd u ra Air Partner is not an air carrier. It acts as agents for its customers in arranging flights operated by air carriers under FAR Part 135 (or foreign equivalent). For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A4 | Tuesday, November 14, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X **** THE WALL STREET JOURNAL. U.S. NEWS Democrats’ Test: Don’t Blow New Opportunity CAPITAL JOURNAL By Gerald F. Seib For Democrats, it must seem as if the skies have opened and begun showering good news down upon them. In the election that really matters this year, in Virginia, they not only retained the governor’s seat but scored victories down-ballot in state legislative races. They also won the New Jersey governor’s race and flipped state legislative seats in Georgia and Washington state. In Alabama, of all places, their U.S. Senate candidate, Doug Jones, is running even or, in one new poll, slightly ahead of Republican Roy Moore amid allegations that Mr. Moore once made sexual advances on a 14-year-old girl. President Donald Trump is bumping along at a 39% job-approval rate, and GOP Senators Jeff Flake and Bob Corker have delivered a more cutting indictment of his performance than any Democrat could offer. S o life is good for Democrats. They now have legitimate hopes of winning back control of the House of Representatives next year. But can they still blow it? Of course they can. That’s true in part because American politics in the last generation has featured a recurring cycle of each party in turn overplaying a good hand. This time, Democrats can miss their chance by deciding that simply running against an unpopular president is sufficient, and failing to come up with an economic message that recaptures the kinds of voters they lost to Mr. Trump. Put simply, Democrats haven’t definitively proven they can succeed in the hardest task before them: marrying the energy on the party’s progressive left with votes from traditionally Democratic working-class whites in the center. Until they do, their march back to power will remain an uphill one, because turning the 24 House seats that would add up to a majority will require exactly that. So how do they accomplish that task? A good way to explore that question is to talk with Rep. Tim Ryan of Ohio, a rising Democratic star. He represents not one of his party’s safe coastal enclaves, but rather the kind of bluecollar district around Youngstown where Trump voters emerged in force last year. Such voters used to be reliable Democrats, but Hillary Clinton won just 51% of the vote in his district last year. “Obviously there’s a lot of intensity within the Democratic party, so I think that’s a really good thing that will continue to benefit us for the next year,” says Mr. Ryan, a political centrist. “But it’s just the beginning. We have a long way to go over the course of the next year.” Specifically, he says, “we’ve got to continue to sharpen the economic message for our party.” Many of the congressional districts Democrats need to win next year, he adds, won’t contain an area like northern Virginia, where The party now has legitimate hopes of winning control of the House next year. a combination of young professionals and upper-income suburbanites helped propel Democrat Ralph Northam to victory in the governor’s race. “So we’ve got to, I believe, call out the president’s inadequacies in dealing with the real economic problems of the country,” he says. For one thing, “we’re still waiting for this trillion-dollar infrastructure bill he talked a lot about in the campaign.” In blue-collar America, that idea translates not only into fixing crumbling roads and bridges, but into jobs. He also says that, while Mr. Trump is challenging trade deals he calls unfair to the U.S., he has failed to call out the “inadequate provisions” in those pacts for dealing with labor and environmental standards important to Democrats. And he says Trump economic and tax proposals do little to discourage companies from outsourcing work abroad. Democrats should call our corporations for cheating on taxes, he says, without being “hostile to business.” In some ways, the biggest Ryan initiative has been his advocacy of an enormous increase in the earned-income tax credit, a program that gives a tax benefit to lowand moderate-income families, even if they don’t owe federal income taxes. He wants to more than double that credit for some workers, which he argues would help make up for four decades of wage stagnation. M r. Ryan sides with his party’s progressives by advocating a government-run, single-payer health system, but separates from them in arguing it’s a mistake to emphasize attempts to impeach Mr. Trump. At the end of last year, Mr. Ryan had the audacity to run against Rep. Nancy Pelosi to become his party’s House leader. He failed. Now it’s certain that Republicans will try to make Mrs. Pelosi the liberal face of Democratic campaigns nationwide next year. Mr. Ryan agrees that kind of GOP campaign is inevitable, but adds that Republicans have their own unpopular leaders to cope with. More important, he says, if Democrats offer a cogent economic message to swing voters, both inside and outside their party, they won’t “get caught up in this left-right dichotomy.” Donald Trump Jr. was in communication during the 2016 campaign with WikiLeaks, the online operation that last year published a trove of damaging Democratic emails that the U.S. intelligence community concluded were stolen by Russian hackers, according to an email obtained by The Wall Street Journal. On Sept. 20, 2016, WikiLeaks contacted the son of President Donald Trump through a direct message on Twitter to advise him about the pending launch of a website that would highlight ties between the elder Mr. Trump and Russian President Vladimir Putin, according to the email. “A PAC run, anti-Trump site putintrump.org is about to launch,” WikiLeaks warned the younger Mr. Trump, who was a top campaign adviser to his father. The WikiLeaks message told him it had “guessed the password” behind the website, and asked Mr. Trump Jr.: “Any comments?” The president’s son responded the next day that he wasn’t aware of the group behind the website, but would “ask around,” according to the email, adding, “Thanks.” He subsequently forwarded the email to top campaign aides, including then-campaign chief executive Steve Bannon, campaign manager Kellyanne Conway, senior adviser Jared Kushner and digital director Brad Parscale, according to the email viewed by The Journal. “Do you know the people mentioned and what the conspiracy they are looking for could be?” he asked the group. The website launched and has since become a project with the news outlet Mother Jones that highlights the president’s ties to Mr. Putin. The exchange—which was first reported by the Atlantic on Monday and is part of a collection of documents turned over to congressional investigators by the younger Mr. Trump’s lawyers—marks the first evidence of direct contact between senior Trump campaign officials and the Sweden-based WikiLeaks. Special Counsel Robert Mueller and congressional investigators are probing whether Trump associates colluded in Russia’s alleged efforts to interfere in the 2016 election. U.S. intelligence WASHINGTON WIRE IMMIGRATION FEDERAL GOVERNMENT Part of Travel Ban Budget Deficit Rose Can Start, Court Says Sharply in October The Trump administration can implement part of its third ban on travelers from certain countries while litigation over the policy is continuing, an appeals court said Monday. The Ninth U.S. Circuit Court of Appeals, based in San Francisco, trimmed back a Hawaii federal judge’s order from last month that blocked the administration from implementing any of its latest planned travel restrictions on people from six Muslim-majority countries. The appeals court said Trump officials for now can impose the ban on would-be travelers who don’t have close connections to people or organizations in the U.S. But the administration can’t apply the ban to travelers, including extended family members, who have bona fide relationships with U.S. residents, the Ninth Circuit said. —Brent Kendall Crafted in gold & platinum Order by 12/20 for the Holidays Your Anniversary Immortalized In Roman Numerals JOHN-CHRISTIAN.COM 888.646.6466 The federal government began its new budget year with an October deficit of $63.2 billion, up sharply from a year ago. The Treasury Department reported Monday that the October deficit was 37.9 percent higher than the $45.8 billion deficit recorded in October 2016. The deficit for the 2017 budget year, which ended on Sept. 30, totaled $666 billion, up 13.7 percent from a 2016 deficit of $586 billion. —Associated Press RUSSIA PROBE Sessions to Appear Before Committee Attorney General Jeff Sessions returns to Capitol Hill this week amid growing evidence of contacts between Russians and associates of President Donald Trump, bracing for an onslaught of lawmaker questions about how much he knew of that outreach during last year’s White House campaign. The appearance before the House Judiciary Committee on Tuesday follows a guilty plea from one Trump campaign aide who served on a foreign policy council that Mr. Sessions chaired, as well as statements from another adviser who said he had advised the then-GOP Alabama senator about a coming trip to Russia. —Associated Press The exchange between Donald Trump Jr. and WikiLeaks was among documents his lawyers turned over to congressional investigators. agencies in January concluded that Russia sought to influence the 2016 presidential campaign by hacking political websites and spreading false ads on social media pages. The president has called the investigation a “witch hunt” and has denied collusion by him or his campaign, and Moscow has denied meddling in the election. The younger Mr. Trump was questioned by the Senate Judiciary Committee staff in September as part of the panel’s Russia investigation. Alan Futerfas, a lawyer for the president’s son, said in a statement that he had “no concerns” about his client’s interactions with WikiLeaks during the campaign. “Over the last several months, we have worked cooperatively with each of the committees and have voluntarily turned over thousands of doc- uments in response to their requests,” Mr. Futerfas said. “Putting aside the question as to why or by whom such documents, provided to Congress under promises of confidentiality, have been selectively leaked, we can say with confidence that we have no concerns about these documents and any questions raised about them have been easily answered in the appropriate forum,” he added. WikiLeaks didn’t return a request for comment. Its founder, Julian Assange, said in a series of tweets Monday that he couldn’t confirm the communication between WikiLeaks and the younger Mr. Trump. Mr. Assange also said the president’s son had been “rebuffed” when he asked for details from the website about its pending publications of the stolen messages. Justices Take Up Abortion-Speech Case BY BRENT KENDALL AND JESS BRAVIN WASHINGTON—The Supreme Court agreed to take up an appeal by antiabortion pregnancy centers challenging a California law that requires them to tell patients about the availability of publicly funded pregnancy services, including abortion. The case, Nifla v. Becerra, was one of three First Amendment-related appeals the high court added to its docket Monday. The justices also agreed to consider whether states can ban political buttons and apparel from polling stations, and whether local officials in Florida can be sued for arresting a resident who criticized their land-use policies at a public meeting. The abortion speech case adds another highly charged issue to a docket that already is filled with divisive cases, including one next month that examines whether a baker can refuse to make wedding cakes for same-sex couples. California’s Democratic Gov. Jerry Brown signed the abortion-clinic measure in 2015 and it took effect last year. The law, the Reproductive FACT Act, requires certain licensed pregnancy-related centers to post notices and include disclaimers in their literature advising patients that Medi-Cal, the state’s version of Medicaid, covers abortions for eligible low-income residents. The Legislature said the law JOHN MINCHILL/ASSOCIATED PRESS BY REBECCA BALLHAUS KATHY WILLENS/ASSOCIATED PRESS Donald Trump Jr. Was in Contact With WikiLeaks The high court will review a Minnesota law against political messages at polls, including the Gadsden flag favored by tea-party groups. was necessary because the targeted facilities, in their efforts to discourage abortions, “often confuse [and] misinform women” about their rights and available benefits. Religiously affiliated antiabortion pregnancy centers, and an organization representing such facilities, petitioned the Supreme Court. They said the law violates free-speech and religious-exercise protections because it forces them to communicate a government mes- sage about the availability of state-funded abortion. In a separate case, the court said it would decide whether a state ban on political buttons or apparel within a polling station is constitutional. In 1992, the court upheld a Tennessee law prohibiting “campaign materials” within 100 feet of a polling place. The law now at issue, a Minnesota state statute, sweeps more broadly, prohibiting materials that suggest political views beyond the specific candidates or issues on the day’s ballot. The final case involves a long-running dispute before the Supreme Court. In 2013, the court ruled for Fane Lozman after the city of Riviera Beach, Fla., invoked maritime law to seize the houseboat on which he had lived. In the current case, Lozman v. Riviera Beach, Mr. Lozman was arrested for disorderly conduct after refusing to leave the lectern at a November 2006 City Council session. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | A5 Fiduciary: It’s the word independent advisors live by. Independent Registered Investment Advisors are held to the highest standard of care. As fiduciaries, they are required to act in the best interests of their clients at all times. That’s why we support independent financial advisors. And why we think it’s worth your time to learn more. FindYourIndependentAdvisor.com Annette B. | Independent financial advisor since 2006 Charles Schwab is committed to the success of over 7,500 independent financial advisors who are passionately dedicating themselves to helping people achieve their financial goals. This content is made available and managed by Charles Schwab & Co., Inc. (“Schwab”). The purpose of this information is to educate investors about working with an independent Registered Investment Advisor (RIA). The RIAs and their representatives featured here use Schwab Advisor Services™ for custody, trading, and operational support. Inclusion should not be construed as a recommendation, an endorsement, or a sponsorship by Schwab. Many independent RIAs and other financial services professionals receive compensation for services in a variety of ways. Registration does not imply a certain level of skill or training. It is the responsibility of each investor to determine which method of compensation offers the lowest total costs and best serves the interests and needs of the investor. ©2017 Charles Schwab & Co., Inc. All rights reserved. Member SIPC. (0416-F1LX) (ADP92136-00) (06/16) For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A6 | Tuesday, November 14, 2017 * *** THE WALL STREET JOURNAL. U.S. NEWS Mnuchin Says No Give on 20% Tax Rate Treasury chief says Trump won’t budge; ‘perfectly fine’ if Yellen stays as Fed governor GOP Works to Make Legislation Meet The ‘Byrd Rule’ BY NICK TIMIRAOS Continued from Page One The U.S. has also seen a pickup in listings and has drawn some of the biggest offerings this year from the likes of social-media giant Snap Inc. and cable company Altice USA Inc. Many prominent companies, however, are flush with private capital and under no urgency to go public, which has kept U.S. IPO activity below its recent 2014 high. Almost 170 private companies globally are valued at $1 billion or more, according to Dow Jones VentureSource. That is up from about 75 in November 2014. Instead, the uptick in new listings has been largely driven by smaller companies outside the U.S. “China is the story right now that has distorted the IPO picture,” said Andrew Clarke, director of trading at Mirabaud Asia Ltd. in Hong Kong. “China and Hong Kong are listing lots of stocks. They’re generally small, but they add up,” he added. Treasury Secretary Steven Mnuchin, right, is interviewed by Wall Street Journal Editor in Chief Gerard Baker at the Journal’s CEO Council. plan and slightly more under the Senate plan—would ultimately make up the lost revenue through stronger economic growth. Forecasts from independent tax-analysis experts show economic growth would make up some but not all of the lost revenue. Mr. Mnuchin promised “complete transparency” in showing how the plan would deliver A total of 377 Chinese companies have completed IPOs in Shanghai and Shenzhen so far this year, according to Dealogic, the most since at least 1995, when the firm started tracking the data. The deals make up one-fourth of all global IPOs by number of deals, the largest percentage on record and up from 10% as recently as 2014. Hong Kong was the world’s most-popular venue for new listings the past two years. While 2017 hasn’t been as robust, the market has recently seen newfound fervor. The recent IPO of China Literature Ltd., a subsidiary of Tencent Holdings Ltd. that owns a large online library of works by Chinese authors, drew more than $100 billion in investor orders for the company’s $1.1 billion stock sale, with much of the demand coming from retail investors. Its shares nearly doubled on their first trading day. Investors are being rewarded for diving into the new listings. Shares of newly public companies in Asia-Pacific, on average, have risen nearly 154% stronger growth. But pressed on whether the Treasury would release additional models or evidence to support those claims, he demurred. “Treasury already has,” he said. “We’re going to have outside groups do it.” Mr. Mnuchin also said he strongly supported President Donald Trump’s decision to name Federal Reserve governor Support news literacy at thenewsliteracyproject.org mand. After a stock-market crash in 2015, China’s securities regulator temporarily halted new listings. In the middle of last year it started accelerating approvals for companies wishing to go public. Other countries in Asia, including India and South Korea, have accounted for some of the analysts and investment bankers. As more companies go public in Asia, the continent’s vast and growing collective of wealthy individuals, particularly in China, are looking for more ways to diversify their capital. Asia’s billionaires outnumbered those in the U.S. last year for the first time, with the biggest catalyst being growth in China, according to a report by UBS Group AG and PwC. Damien Brosnan, Hong Kong-based portfolio manager at Maven Investment Partners Ltd. and former head of equity capital markets for Asia at UBS, said he sees more funds setting up stock portfolios and strategies that are dedicated to AsiaPacific compared with a few years ago. Even though listing activity has picked up, there are plenty of private companies in Asia following big U.S. startups in putting off going public. AsiaPacific represents 40% of IPOs by deal value this year, compared with 32% for the Americas and 28% for Europe, the Middle East and Africa, according to Dealogic. load. For stress tests alone, building a system to meet the Fed’s expectations could cost firms tens of millions of dollars or more. Liquidity rules governing banks’ cash holdings are another expensive regulatory exercise that the legislation could allow the Fed to ease. Regional banks have said their smaller size and lack of interconnected trading businesses makes it unlikely that their demise could create systemic risk that would threaten the economy as Lehman Brothers’ failure did in 2008. Their critics say regional banks can be risky, pointing to the 2008 failure of IndyMac Bank. The deal marks a setback for regional banks with assets above $250 billion, including U.S. Bancorp and PNC Financial Services Group Inc., which have urged policy makers to do away with asset-size thresholds altogether. They favor allowing regulators to apply rules based on their own judgment of firms’ riskiness. “$50 billion? $250 billion? Why is that number any better than another?” U.S. Bancorp’s chief financial officer Terry Dolan said in an October interview. His firm has about $459 billion in assets. PNC said in a statement Monday it was disappointed in lawmakers’ proposal. “As a Main Street Bank, PNC’s business model and risk profile are very similar to that of other regional banks, and very different from the systemically important Wall Street banks,” it said. Monday’s deal is co-sponsored by nine Republicans, including Tim Scott of South Carolina and Bob Corker of Tennessee, along with nine Democrats, including Joe Donnelly of Indiana and Heidi Heitkamp of North Dakota. That is enough to clear both the banking panel and the full Senate, assuming all Republicans in the chamber support the bill. In brokering the deal, Mr. Crapo left off key Republican goals such as attacking the Volcker rule, a ban on proprietary trading. “This is the first proposal that has a legitimate shot at making it to the president’s desk,” said Milan Dalal, an attorney at lobbying firm Brownstein Hyatt Farber Schreck in Washington and a former aide to Sen. Mark Warner (D., Va.), who backed Monday’s deal. Republicans hold just 52 seats in the Senate and generally need support from at least eight Democrats for legislation to pass a needed 60-vote threshold. The House, also controlled by Republicans, would need to act for the plan to clear Congress. Mr. Crapo released a summary of the legislation Monday, without unveiling its text. It appears to send a message that Congress wants regulators to lighten the burden, though regulators still have broad authority to apply tough rules to banks they view as risky. Regulators could immediately exempt firms with assets between $50 billion and $100 billion from stress tests and other rules that were mandatory under Dodd Frank, according to the summary of the legislation. Banks with between $100 billion and $250 billion in assets could get that treatment after 18 months, though the Fed could exempt them earlier. Banks in the latter group would still have to take periodic stress tests. Asia-Paciﬁc is now the most popular location for initial public offerings, a sharp change from two decades ago when the Americas dominated the IPO market. Percentage of total number of deals globally per year 100 % Americas Europe, Middle East and Africa Asia-Paciﬁc 90 80 70 60 50 40 30 20 10 0 1995 2000 ’05 ’10 ’15 Note: through Friday Source: Dealogic from their IPO prices this year through Friday, according to Dealogic. That compares with an average 32% gain for IPOs in the Americas and a 12% increase for new issues in Europe, the Middle East and Africa this year. The slew of Chinese IPOs is partly a result of pent-up de- Continued from Page One growth by limiting the capacity of banks and other businesses to serve customers and hire new workers. While it isn’t clear that any rule reduction will bolster the economy, efforts to scale back the 2010 Dodd Frank financial overhaul law and other policies amount to a bet that a freer environment will pave the way for increases in investment, spending and hiring. Analysts said it isn’t clear that lending would actually increase, given that demand for commercial loans this year has been weak. But banks that had been avoiding mergers, such as those that didn’t want to go over the $50 billion line, could be more inclined to deal-making, said Brian Klock, an analyst at Keefe, Bruyette & Woods. The deal could dramatically lighten the regulatory burden on a wide swath of banks from Utah’s Zions Bancorporation to M&T Bank Corp. in Buffalo, N.Y. Those banks in recent years have had to submit to detailed financial and risk exams in order to pay dividends to shareholders. Many banks bristled at this annual “stress test” review done by the Federal Reserve, and some including Zions, Citizens Financial Group Inc., BB&T Corp. and SunTrust Banks Inc., failed the Fed’s annual test previously. The bill would lighten their stress-test cies, Mr. Mnuchin said the new technology needed to be studied more carefully, and he warned that the currencies are being used by “a lot of people” for illicit transactions. Mr. Mnuchin, a former banking executive, said he didn’t believe that digital currencies were helping to lower transaction costs in the financial-services market. larger listings in the region. Overall, nearly 950 companies have gone public in Asia-Pacific, the most since the height of the dot-com boom in 2000. The number of new listings in the U.S. fell sharply around that time, and they have never recovered to their late-1990s levels. Back then, many fledgling companies in the U.S. raced to go public to cash in on soaring equity prices. Ultimately, many of those companies failed, and the stock market tumbled. Today, the worry is IPOs in Asia are dominated by smaller companies, many of which are unprofitable and have unproven business models yet are benefiting from a friendly market environment. Stock markets in Asia have been among the best global performers this year, with indexes in Hong Kong, Korea and India gaining at least 20% apiece through Friday. Low volatility and still-reasonable valuations relative to the U.S. and Europe have also bolstered the prospects of Asian stock markets, drawing companies to list their shares there, according to Shifting Inﬂuence BANKS DON’T TAKE NEWS AT FACE VALUE. Jerome Powell to replace Fed Chairwoman Janet Yellen when her term expires next February. He said it would be “perfectly fine” with him if Ms. Yellen remained on the Fed’s sevenmember board of governors. Ms. Yellen’s term as a governor doesn’t expire until 2024. Pressed about the prospects for the wider adoption of bitcoin and other digital curren- THE WALL STREET JOURNAL. ANDREW HARRER/BLOOMBERG NEWS IPOS RALPH ALSWANG FOR THE WALL STREET JOURNAL WASHINGTON—Treasury Secretary Steven Mnuchin said the Trump administration wouldn’t support tax legislation with a corporate tax rate of more than 20% as part of any future compromise between the House and the Senate. In an interview at The Wall Street Journal CEO Council gathering Monday, Mr. Mnuchin ruled out any increase in the corporate tax rate to above 20%. “It’s not going up,” he said. “I can tell you this is one of the things the president feels very strongly about.” Senate Republicans’ proposal to overhaul the tax code, unveiled last week, diverges in key ways from a plan that advanced through a House committee. Both bills would reduce the corporate tax rate to 20% from 35%, but the Senate proposal would delay the rate cut until 2019, forgo a repeal of the estate tax and eliminate the entire state and local tax deduction. Compared with the House bill, those changes and others freed up hundreds of billions of dollars that enabled senators to avoid tough and politically painful choices. Mr. Mnuchin said the Treasury Department believes the GOP tax overhaul—which congressional analysts estimate would cost about $1.4 trillion over 10 years under the House WASHINGTON—Senate Finance Committee Republicans, who began debate on Monday on a major tax overhaul, must make significant revisions to their proposals in the days ahead to stay within rules preventing longrun budget deficits. As written, the Senate Republican tax bill doesn’t comply with what is known as “the Byrd Rule,” which prevents the Senate from passing tax and spending measures on simple majority votes if they increase budget deficits beyond 10 years. “It literally cannot pass the Senate. It’s against the rules unless they have 60 votes,” said Marc Goldwein, senior vice president of the Committee for a Responsible Federal Budget. Republicans haven’t said how they plan to change the bill to comply with the Byrd Rule. The most likely scenario is setting many of the tax cuts to expire after 2027, at the end of the decadelong budgeting period. It may take more than that. The committee debate is expected to run through the week, paving the way for full Senate consideration after Thanksgiving. The full House is expected to vote on its tax bill this week. —Richard Rubin Sen Michael Crapo (R., Idaho) heads the Senate Banking Committee. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | A7 Marketing Data Onboarding | IDMP | Customer Intelligence | Audience Targeting | Measurement | Analytics ©2017 Neustar, Inc. All rights reserved. www.marketing.neustar For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A8 | Tuesday, November 14, 2017 THE WALL STREET JOURNAL. WORLD NEWS Trump, Duterte Bond, Skirt Tough Issues U.S., Philippine leaders discuss trade, security, avoid alleged abuses, Chinese sea claims MANILA—President Donald Trump and Philippine leader Rodrigo Duterte found common ground during their first extended meeting, but skirted difficult issues such as alleged human-rights abuses in Mr. Duterte’s war on drugs and Chinese claims to the South China Sea. The meeting on Monday was seen as a way for the U.S. and the Philippines to repair a historically close relationship that was shaken last year because of Mr. Duterte’s antiAmerican rhetoric. The leaders discussed trade relations, the Philippines’ large outsourcing industry, U.S. assistance on counterterrorism and their personal relationship, said Harry Roque, a spokesman for Mr. Duterte. He said that they affirmed close ties in a frank 40-minute discussion and that Mr. Trump told Mr. Duterte that he has a friend in the U.S. president. Before the meeting, Mr. Trump told reporters he and Mr. Duterte “had a great rela- JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES BY JAKE MAXWELL WATTS President Trump joined hands with Vietnam Premier Nguyen Xuan Phuc, left, and Philippine President Rodrigo Duterte in Manila Monday. tionship.” Mr. Duterte called his country “an important ally” and shooed away reporters in a joke shared with Mr. Trump, saying, “You guys are the spies.” The night before, Mr. Duterte sang a Philippine love song at the behest of Mr. Trump, according to a video posted on Twitter by a Philippine government official. The tone is a sharp shift from Mr. Duterte’s relationship with the U.S. under President Barack Obama, whom he once insulted for wanting to raise human-rights issues. Mr. Duterte has been public about harboring animosity toward the U.S. for its colonial history in the Philippines. What was significant about Monday’s meeting, however, wasn’t the budding friendship but what the presidents didn’t discuss in detail—most notably, concerns over the Philippines’ war on drugs and alleged extrajudicial killings. Since Mr. Duterte took office last year, thousands of people have died in the crackdown on illegal drugs, most shot during police operations or by gunmen that activists say are police in plainclothes—a charge that Mr. Duterte denies. During their meeting, Mr. Duterte explained his policy in the war on drugs to Mr. Trump, said Mr. Roque. White House press secretary Sarah Huckabee Sanders said “hu- man rights briefly came up,” adding that the conversation— on the sidelines of a meeting of Southeast Asian nations— focused on Islamic State, illegal drugs and trade. The two leaders also appeared to sidestep the issue of competing territorial claims to the South China Sea, resourcerich waters that are claimed by the Philippines, China and several other nations. China claims almost the entire sea and has militarized some of the disputed islands. The Philippines won an international arbitration last year that effectively invalidated China’s claims, but Mr. Duterte hasn’t pressed the issue, instead reaching out to Beijing for investment in infrastructure. Mr. Duterte said Sunday the South China Sea is better left “untouched,” for fear of war. The U.S. doesn’t take sides in the dispute, but has conducted frequent naval patrols through the disputed waters. The issue came up in a meeting between the U.S. and the 10country Association of Southeast Asian Nations, Mr. Roque said. The countries said they agreed to commit to peaceful resolution of disputes under international law, and to “the rights of freedom of navigation and overflight” and “non-militarization and self-restraint.” North Korea Soldier Shot at Border Zone HONG KI-WON/YONHAP/REUTERS BY ANDREW JEONG A surgeon speaks with a South Korean soldier at a hospital where a North Korean soldier was taken on Monday for treatment. SEOUL—A North Korean soldier apparently defected to the South on Monday, only to be shot by his comrades as he crossed the border at the most sensitive area of the heavily armed demilitarized zone that divides the Korean Peninsula. The North Korean soldier, who tried to cross over at the Joint Security Area, where troops from North and South The enduring beauty of a Byzantine necklace A delightful mix of exquisite Italian craftsmanship and 18kt gold over sterling. That extra dash of elegance that defines your impeccable style. A chic finish for dress-up, a touch of grace for everyday. $ 99 Plus Free Shipping Byzantine Necklace from Italy 18kt gold over sterling silver. 18" length. 1⁄4" wide. Lobster clasp. Shown larger for detail. Ross-Simons Item #872029 To receive this special offer, use offer code: THEBEST250 1.800.556.7376 or visit www.ross-simons.com/THEBEST Korea stand face to face, was shot in the shoulder and elbow, according to a spokesman for South Korea’s Defense Ministry. “Our side heard gunshots, and then we found him near Freedom House,” the spokesman said, referring to the main building on the South Korean side of the border, near where the armistice agreement declaring a ceasefire to the Korean War was signed in 1953. The spokesman said the North Korean soldier had been taken by helicopter to a hospital for treatment. It wasn’t clear whether any South Korean or U.S. personnel were wounded in the incident, but a person briefed by the South Korean Joint Chiefs of Staff and a spokesman for the South Korean Defense Ministry said the North Korean soldier was the only person hurt. The U.S. maintains about 28,500 troops in Korea. The Defense Ministry spokesman said it wasn’t clear whether there were any civilians at the JSA at the time of the incident. The JSA—a symbol of the Cold War—is one of the most popular stops for foreign tourists to South and North Korea, and among the most photographed and heavily watched places on the Korean Peninsula. Gunshots were first heard on the South Korean side around 3:30 p.m., the spokesman said, and a team from the South Korean side secured the wounded North Korean soldier after about 25 minutes, he said. The incident follows by days an attempt at a surprise visit by President Donald The soldier, who was taken to a hospital, apparently defected to the South on Monday. Trump to the Joint Security Area during his stop in South Korea last week. Mr. Trump’s trip was canceled after his helicopter encountered thick fog, though Secretary of Defense Jim Mattis visited last month. It also comes as the U.S. operates three carrier strike groups in the waters just east of the Korean Peninsula in a show of force aimed in part at deterring Pyongyang. The USS Ronald Reagan, the USS Theodore Roosevelt and the USS Nimitz are conducting the first three-carrier operation in the western Pacific since 2007. The three groups carry about 200 jet fighters that can conduct around-the-clock military operations. Although tens of thousands of North Koreans have defected to the South through third countries, including China, it is relatively rare for soldiers to cross the heavily fortified DMZ by land, given the land mines, barbed-wire fences and artillery on both sides. The most recent known defection of a North Korean soldier over the DMZ was in June at a different part of the border. The JSA, which has been a venue for talks and prisoner exchanges among North and South Korea and the U.S., isn’t typically the scene of skirmishes, although violent incidents there aren’t unheard of. In August 1976, North Korean troops killed U.S. Army Capt. Arthur Bonifas and First Lt. Mark Barrett at the JSA, in what became known as the Axe Murder incident. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | A9 WORLD NEWS Myanmar Resists Pressure BY NIHARIKA MANDHANA AND MYO MYO BY PAUL KIERNAN 500 miles NAVESH CHITRAKAR/REUTERS NAYPYITAW, Myanmar— Aides to Aung San Suu Kyi have been warning Western ambassadors that their pressure on Myanmar in support of ethnic Rohingya Muslims is pushing the country closer to China—a sign of the resistance that awaits Secretary of State Rex Tillerson when he visits on Wednesday. The U.S. and others are pressing Buddhist-majority Myanmar and its Nobel Prizewinning leader to do more to address a humanitarian crisis caused by a military crackdown on the Rohingya that drove over 600,000 people across the border into Bangladesh. Mr. Tillerson in September condemned what he called the “horrors that we are witnessing” in Myanmar, amid reports that the military had burned Rohingya villages and killed and raped villagers. Proposed legislation in the U.S. Congress seeks to block assets of military leaders and ban their travel. During his visit, Mr. Tillerson intends to meet with senior leaders and officials on actions to address the crisis and U.S. support for the democratic transition in the formerly military-ruled country, according to the State Department. Myanmar denies refugee accounts of atrocities during security operations, which came after a Rohingya militant group attacked military outposts near the border in August. Ms. Suu Kyi’s government accuses Western leaders of falling for what they say are biased reports. Ms. Suu Kyi’s aides said she wouldn’t change course in response to U.S. or European sanctions. “We are used to being under pressure—first it was the military, now it’s the West,” said Win Htein, a senior party leader close to Ms. Suu Kyi. Mr. Win Htein said he has told Western diplomats that if such pressure continues, “it’s inevitable” that Myanmar will Brazil Lacks Means to Process Offshore Oil Find Refugees took shelter Monday after crossing the border, in Teknaf, near Cox’s Bazar, Bangladesh. Local Leverage China dominates the foreign-investment landscape in Myanmar. China $19.38 billion Singapore $18.59 Thailand $11.01 Hong Kong U.K. † South Korea $7.76 $4.33 $3.78 Vietnam $2.10 Malaysia $1.95 Netherlands India $1.51 $0.74 Japan $0.72 France $0.55 U.S. $0.38 Indonesia $0.27 move closer to its neighbor China. Beijing has been Myanmar’s most vocal defender. Western officials said they had tried but failed to push Ms. Suu Kyi’s government to take concrete steps that would help ease the global outcry. A Western diplomat said the U.S. and Europe had little leverage because China, Japan, India and other Asian nations had †British Overseas Territories Note: Figures as of Sept. 30, 2017 Source: The Directorate of Investment and Company Administration THE WALL STREET JOURNAL. indicated they would remain engaged with Myanmar. Advisers to Ms. Suu Kyi said they expect the U.S. will reimpose some of the restrictions former President Barack Obama lifted last year after Ms. Suu Kyi’s National League for Democracy came to power in Myanmar’s first free election in half a century. Arizona Republican Sen. John McCain has called for such action to punish Myanmar’s military leaders. The previous sanctions were removed to encourage Myanmar’s democratic transition. Some U.S. officials said they worry that reinstating any sanctions would undermine that process. Ms. Suu Kyi’s aides are also sending the message that sanctions could worsen her relationship with the army and cause the generals to tighten their grip. Ms. Suu Kyi doesn’t control the military, which still runs many of the most important government agencies. Aides said Ms. Suu Kyi’s priority is to be able to work with the military to achieve her longer-term goals, which include constitutional change toward a fuller democracy. Aides also said Ms. Suu Kyi feels betrayed by the West and has sunk into siege mentality. “In a few years, the U.S. and Europe might be asking: Who won and then lost Myanmar?” said Simon Tay, chairman of the Singapore Institute of International Affairs. “Myanmar wants to diversify, but if they have no choice, they will turn to China.” RIO DE JANEIRO—In a few months, Brazil’s federal government will start receiving crude oil from a huge field, known as Libra, off the coast of Rio de Janeiro. But the government has no tanker ships to unload oil from the platform where it will be pumped. It has no terminals to store oil, no pipelines to transport it and no refineries to process it. Worst of all, oil companies that do have such assets, like Brazil’s own Petróleo Brasileiro SA, or Petrobras, are staying away for fear that working with the government could expose them to compliance issues at a time when the three-year-old Car Wash probe has heightened concerns about corruption. The situation, which officials are scrambling to resolve before the government receives its first 500,000-barrel boatload in February or March, has been years in the making. After Brazil discovered massive offshore crude deposits a decade ago, its leaders were eager to show that the money would directly benefit the people. Then-President Luiz Inácio Lula da Silva created a new system whereby drilling rights to so-called strategic areas were auctioned off to those firms promising the government the greatest share of “profit oil,” or the product that remains after exploration, development and production costs are covered. Auctioned in 2013 to a consortium led by Petrobras, Libra’s contract stipulated that 42% of profit oil be given to a specially created, state-owned entity dubbed Pré-Sal Petróleo SA, or PPSA. By law, PPSA sales are earmarked to a special fund that is supposed to spend money on areas like education and health. The trouble is, PPSA finds itself 500 km BRAZIL Brasília Rio de Janeiro PAR. URU. São Paulo Libra oil ﬁeld Atl a nti c O cea n unable to receive any actual oil. The law says PPSA is supposed to designate a “commercial agent,” such as an energytrading company, to offload its oil and sell it on the open market. But PPSA’s president, Ibsen Flores Lima, says the government’s efforts to clarify that rule weren’t completed until March, and that now it could take two years to find an agent through a public tender. Meanwhile, PPSA had assumed Petrobras would fulfill the role of selling the government’s oil on its behalf. But the legal framework drawn up in March scared Petrobras away. The rules would require, for instance, that Petrobras obtain the best possible price for the government’s oil, something Petrobras officials say would be impossible to prove given the commodity’s minute-by-minute volatility. Adriano Pires, an energy consultant based here, said he suspects the government wrote such stringent rules in a bid to eliminate corruption. “Brazil in the time of Operation Car Wash demands increasingly transparent models,” he said. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A10 | Tuesday, November 14, 2017 WORLD NEWS WORLD WATCH Quake Recovery Proceeds VENEZUELA S&P: Nation in Default On Interest Payment FARZAD MENATI/AGENCE FRANCE-PRESSE/GETTY IMAGES By Aresu Eqbali in Tehran and Asa Fitch in Dubai Iranians mourn over the body of a victim of Sunday’s earthquake along the Iran-Iraq border. died there, Iranian authorities said. The toll in Qasr e-Shirin was 28. Hospitals near the epicenter were damaged, and the one in Sarpol Zahab couldn’t continue operating, state television said. Qasr e-Shirin’s hospital was destroyed, according to an official. Authorities were setting up field hospitals. A European Union spokesman said humanitarian partners in the region were starting to provide emergency assistance. The World Health Organization sent a response team and two ambulances to Sulaymaniyah, an Iraqi Kurdish city. Turkey also offered to assist. On Monday, the Trump administration issued a brief statement offering condolences to those affected. “The United States expresses its sincere condolences to all of those affected by the earthquake in Iran and Iraq. We keep the families of those who were killed, and injured, in our thoughts as well as the communities that have suffered damage to homes and property,” State Department spokeswoman Heather Nauert said. While there are no major population centers in the immediate vicinity of the quake’s epicenter, a mountainous area pockmarked with small villages, it lies about 46 miles southeast of Sulaymaniyah, the capital of a province estimated by the Iraqi government in 2007 to have around 1.9 million residents. Hospitals in Sulaymaniyah received about 83 people affected by the quake Monday morning. Tremors were felt as far as the United Arab Emirates and Turkey. Venezuela was ruled in default on a missed interest payment by S&P Global Ratings, pushing the cash-strapped South American country and its creditors one step closer to a reckoning of its $150 billion debt load. The decision by S&P capped a day in which Venezuela promised to keep paying its debts at a conference in Caracas that was attended by few of the Western bondholders that are likely to be hit by a default. S&P downgraded Venezuela’s long-term debt rating to selective default late Monday after it said the government failed to make two bond coupon payments. The missed payments could allow investors to declare the government in default, which would enable bondholders to initiate defaults in other Venezuelan debt and set off a scramble for assets among the country’s many and varied creditors, lawyers and analysts say. —Julie Wernau and Anatoly Kurmanaev EUROPEAN UNION Majority Agrees On New Defense Pact The governments of 23 EU countries agreed to a new defense arrangement aimed at improving military cooperation within the bloc in an agreement that is scheduled to come into force next month. The permanent structured co- operation on defense, or Pesco, proposes increased military spending and cooperation, providing a way to overcome restrictions on individual EU member states’ defense budgets. It also comes as the Trump administration has intensified Washington’s longstanding push for Europe to shoulder more of the financial burden of its own defense. Of the EU’s 28 members, five countries didn’t sign the agreement on Monday. Britain is leaving the bloc and Denmark has an opt-out on defense matters. Ireland, Malta and Portugal have yet to sign. EU officials have said some of the abstainers are thinking of joining and have until December to decide, when the pact becomes legally binding. —Julian E. Barnes and Robert Wall FRANCE Paris Remembers 2015 Attack Victims Families of the victims of France’s deadliest terror attacks stood alongside President Emmanuel Macron on Monday to honor the 130 people killed two years ago when Islamic extremists attacked the City of Light. A crowd joined them on the memorial sites to lay roses and light candles in memory of the victims. Dozens of families and Parisians gathered outside the Bataclan concert hall, where extremists opened fire on a dancing crowd and held hundreds hostage in an hourslong standoff with police. Ninety people were killed. —Associated Press CHAIDEER MAHYUDDIN/AGENCE FRANCE-PRESSE/GETTY IMAGES Rescue efforts were under way Monday after a strong earthquake near the border between Iraq and Iran killed at least 414 people and injured many more. The U.S. Geological Survey said the epicenter of the magnitude-7.3 quake was in Iran about 20 miles south of Halabjah, a city in Iraq’s Kurdish region. It took place at 9:18 p.m. on Sunday. “The magnitude of the disaster is huge,” Esmail Najjar, the head of Iran’s National Disaster Management Organization, said on Iranian state television. “It is unprecedented in this area.” Iranian officials said that in addition to 407 killed in Iran, at least 6,700 were injured. In Iraq, the Interior Ministry said seven people were killed and 321 injured. In Iran, military forces were mobilized, and authorities sent helicopters to transport the injured. Hundreds of aid workers and rescue teams were dispatched to provide food, tents and blankets, state television said. The worst-affected areas in Iran were Sarpol Zahab, Qasr e-Shirin and Salas Babajani, three towns close to the border with Iraq, according to state television. Sarpol Zahab was hit especially hard. At least 236 people THE WALL STREET JOURNAL. * **** EU Snubs U.S. Calls to Raise Pressure on Iran BY LAURENCE NORMAN BRUSSELS—The European Union’s top diplomat rebuffed proposals from Washington to ratchet up pressure on Iran, saying the bloc has no plans to discuss new sanctions on Tehran. The U.S., following the administration’s review of Iran policy, has urged allies in re- cent weeks to raise the cost to Iran of advancing its ballisticmissile program and stoking conflicts in the region. European officials said they would work with Washington on those issues but are lobbying the U.S., in exchange, not to abandon the Iranian nuclear deal, in which Tehran agreed to significantly scale back its nuclear activities in exchange for the lifting of international sanctions. President Donald Trump, who has called the 2015 nuclear accord the “worst deal ever,” has urged Congress to amend U.S. domestic legislation to threaten reimposition of sanctions if Iran takes steps not directly outlawed by the accord. That includes advancing Iran’s missile program. ANCIENT BRICK OLD BRICK Impressive but outdated. Handsome, but past its prime. But EU foreign-policy chief Federica Mogherini, who returned from meetings on the nuclear agreement in Washington last week, has said new sanctions aren’t on the agenda. “We didn’t discuss— not today, not last week... about sanctions, further sanctions, from the European Union side on Iran,” she said on Monday. THIN BRICK Shallow and frail. POD SQUAD: Conservation officers and environmental activists try to refloat stranded sperm whales in Aceh Besar, Indonesia. CONCRETE BRICK NEW BRICK Brick? Really? The brick the world’s been waiting for. NewBrick is the most important innovation in the history of brick. It delivers the classic beauty of clay brick, with enormous advantages in weight, ease of use, environmental impact, system cost, and energy eﬃciency. Learn why NewBrick is the choice for the next generation of brick buildings. Visit newbrick.com or call 1-833-NEWBRIK. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | A11 NY WORLD NEWS BY PAUL HANNON LONDON—The head of Lebanon’s central bank tried to reassure jittery markets after a week of turmoil over the resignation of the country’s prime minister, saying the worst of the crisis was over but policy makers were prepared to intervene if necessary. Prime Minister Saad Hariri’s announcement that he was stepping down and a Saudi decision to order its citizens out of the country have thrust Lebanon to the forefront of a regional struggle between Saudi Arabia and Iran, pushing yields on Lebanese government bonds higher and increasing the cost of buying insurance against a possible default. Both are signs that investors regarded Lebanon as a higher risk. In an interview, Bank of Lebanon Governor Riad Salameh said he expects yields to fall back over coming days and that the country’s banks haven’t reported an unusual outflow of funds. Mr. Hariri said Sunday he would return to Beirut from Riyadh within days, one of a number of recent developments that Mr. Salameh said had helped cool the crisis. Meetings between political parties within Lebanon have “helped to stabilize the unity in the country,” he said. The price of Lebanon’s fiveyear dollar-denominated bonds has fallen by 7% in the past week, while the cost of insuring its debt has risen to its highest level this year amid concerns about default. Mr. Salameh said he believed those moves have gone too far, and “a correction should be in place through the natural forces of the market.” But he didn’t rule out action by the central bank to nudge the market in the desired direction. Lebanese Take Crisis in Stride War-weary country now faces political turmoil; ‘people forget how used to this we have become’ Lebanon’s prime minister has resigned. His powerful patron, Saudi Arabia, has vowed to turn up the heat on the small Middle Eastern country. The powerful LebaBy Nazih Osseiran in Beirut and Margherita Stancati in Riyadh nese paramilitary group Hezbollah has accused the kingdom of warmongering. And European leaders are sounding the alarm about Lebanon’s territorial integrity. But the Lebanese are treating the soaring tensions with Saudi Arabia as just another bump in the country’s turbulent history. “We have handed over our fate to God a long time ago, so we do not care about these developments,” said Walaa Hammiyeh, a 20-yearold college student who was sitting in a garden in downtown Beirut on Monday. Having endured a civil war from 1975 until 1990, and a brief but deadly conflict between Hezbollah and Israel in 2006, turbulence is a familiar state of affairs in Lebanon. The country didn’t have a government for 29 months, until about a year ago. Meanwhile, the Syrian conflict next door has left Lebanon with more than one million refugees. “We have a blessing that we are able to accommodate all situations,” said Lebanon’s Economy Minister Raed Khoury. Lebanon’s current challenges stem from being caught in the middle of a rivalry between two regional powers: Saudi Arabia and Iran, an important backer of Shiite Muslim Hezbollah. Saad Hariri, the leader of Lebanon’s main Sunni Muslim political bloc, abruptly stepped down from the position of prime minister on Nov. 4, citing the negative role of Hezbollah and Iran in JAMAL SAIDI/REUTERS Central Banker Sees Calm Returning A Lebanese artist painted a portrait of Prime Minister Saad Hariri, who resigned this month, during a marathon in Beirut on Sunday. Coalition to Reopen Yemen’s Airports And Sea Facilities Saudi Arabia said the coalition fighting Shiite rebels in Yemen will begin reopening airports and seaports in the Arab world’s poorest country, days after closing them over a rebel ballistic-missile attack on the Saudi capital, Riyadh. Monday’s announcement from the Saudi mission at the United Nations came after the coalition fighting Yemen’s Houthi rebels and their allies faced widespread international criticism over the closure, with the U.N. and aid groups saying it could bring millions of people closer to “starvation and death.” “The first step in this process will be taken within 24 hours and involves reopening all the ports in areas controlled by” Yemen’s internationally recognized government, which the Saudi-led coalition backs, the mission’s statement said. Those ports are in Aden, Mocha and Mukalla. For ports in rebel-held or disputed territories, such as Hodeida, the mission said it had asked the U.N. to send a team of experts to discuss ways to make sure weapons can’t be smuggled in. —Associated Press the region. That triggered a new political crisis in a country already strained by sectarian tensions. The U.S. and its European allies have appealed against outside interference in Lebanon’s internal affairs. The European Union’s foreign-policy chief, Federica Mogherini, said the bloc’s head of delegation in Riyadh met with Mr. Hariri on Monday for the second time in four days and said she would meet with Lebanon’s foreign minister on Tuesday. “We expect no external interference in this national agenda and we believe it is essential to avoid importing into Lebanon regional conflicts, regional dynamics, regional tensions that have to stay out of the country,” she said. Mr. Hariri announced his resignation from Riyadh, arousing suspicions that Saudi Arabia, the chief patron of Mr. Hariri’s political bloc, forced him to quit. People familiar with the matter said Saudi officials pressured the premier to step down over his refusal to take a more hard-line stance against Hezbollah, which both Saudi Arabia and the U.S. consider a terrorist organization. In a live interview he gave on Sunday night to Future TV, a television channel linked to his political party, Mr. Hariri said he would return to Lebanon within days. Mr. Hariri, in his Sunday interview, said he “will not allow a regional war in Lebanon.” The country’s Christian president, Michel Aoun, an ally of Hezbollah, on Monday said he looked forward to Mr. Hariri’s return to Lebanon. In Lebanon, many also play down the possibility of a confrontation with Saudi Arabia. “They are practicing psychological warfare on us. That is the only thing that they are doing,” said a Lebanese security officer. Tens of thousands of people turned out on Sunday to run in and watch the Beirut marathon. After the event, people danced and sang as a DJ pumped out pop tunes. “What is happening is worrying, but people forget how used to this we have become,” a man who provided only his first name, Ahmad, said as he watched his wife and daughter dance nearby. —Laurence Norman, Summer Said and Raja Abdulrahim contributed to this article. THE EXPERIENCE TO DELIVER SOUND ADVICE. THE TEAM TO MAKE IT HAPPEN. THAN YOU EVER THOUGHT POSSIBLE Our members charter to major destinations worldwide and enjoy never-before-seen low pricing, guaranteed availability, zero upfront commitment, and year-round service reliability. NEW YORK SOUTH FLORIDA FROM $1,990 NEW YORK CHICAGO FROM $3,980 NEW YORK LOS ANGELES FROM $7,950 AND MANY OTHER POPULAR ROUTES CALL US TODAY -----------------------$800,000,000 -----------------------$250,000,000 -----------------------$162,000,000 Senior Secured Credit Facilities Joint Lead Arranger and Bookrunner 4.750% Senior Notes due 2027 Joint Book-Running Manager Senior Secured Credit Facilities Sole Lead Arranger and Bookrunner October 2017 October 2017 October 2017 -----------------------$270,000,000 -----------------------$300,000,000 -----------------------$1,000,000,000 Senior Secured Credit Facility Sole Lead Arranger and Bookrunner 4.000% Senior Notes due 2022 Joint Book-Running Manager Three-Part Senior Notes Joint Book-Running Manager July 2017 July 2017 June 2017 Regions Securities® is focused on providing small- to large-cap companies high-quality service and advice from talented, relationship-oriented bankers. That means your business gets our dedicated “A Team” every time. Our capital markets experience and deep resources enable you to receive creative, customized solutions tailored to meet your company’s strategic and ﬁnancial objectives. From capital raising in the debt and equity markets to mergers and acquisitions advice, our bankers can set things in motion for your company. It’s time to take the next step and get the attention you and your company deserve. Terry Katon | Executive Managing Director Capital Markets firstname.lastname@example.org Ward Cheatham | Executive Managing Director Corporate Banking email@example.com +1 (866) 980-2758 regions.com/securities USE PROMO CODE JS17 Corporate Banking | Capital Markets & Advisory Services Comprehensive Financing Solutions | Industry Expertise Investment, Annuities and Insurance Products Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value Purchase of membership is required. JetSmarter offers a number of programs including private charters, for which JetSmarter acts solely as your agent in arranging the ﬂight, and Public Charters, for which JetSmarter acts as principal in buying and reselling the air transportation. JetSmarter does not own or operate any aircraft. All ﬂights are performed by FAA-licensed and DOT-registered air carriers. Prices displayed above are for a select number of seats on a custom shared ﬂight. Additional restrictions may apply. Are Not Deposits | Are Not Insured by Any Federal Government Agency Are Not a Condition of Any Banking Activity Securities activities and Merger and Acquisition advisory services are provided by Regions Securities LLC, 1180 W. Peachtree St. NW, Suite 1400, Atlanta, GA 30309, 404-279-7400. Member FINRA and SIPC. Banking products and services, including lending, financial risk management, and treasury and payment solutions, are offered by Regions Bank. Deposit products are offered by Regions Bank, Member FDIC. © 2017 Regions Bank. All rights reserved. Regions Securities is a registered service mark of Regions Bank and is used under license for the corporate and investment banking services of subsidiaries of Regions Financial Corporation. Regions, the Regions logo and Regions Securities are registered trademarks of Regions Bank and are used by its affiliates under license. The LifeGreen color is a trademark of Regions Bank. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A12 | Tuesday, November 14, 2017 THE WALL STREET JOURNAL. Miles Ahead More than double the print customers, Mon–Fri. Readers across the nation turn to WSJ for the unbiased reporting, commentary and analysis they need to get ahead and stay there. It’s no wonder we’re America’s number one–selling and most trusted newspaper. Sources: Circulation data from AAM Quarterly Data release for quarter ending September 2017. Calculations made by WSJ based on the quarterly data. Pew Research Center: Political Polarization & Media Habits, 2014. WSJ WEEKDAY 1,099,545 NYT WEEKDAY 522,079 America’s Most Trusted Newspaper © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ6155 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. NY Tuesday, November 14, 2017 | A13 WORLD NEWS Pressure Rises on Poland To Stem Nationalist Tide Poland’s ruling party faced growing criticism over its response to a weekend rally organized by nationalist groups, as opposition lawmakers and others accused it of largely turning a blind eye to a rising tide of racism and xenophobia. Israel on Monday called for Polish authorities to “act against the organizers” of the march, in which some carried banners that read “White Europe,” “Europe Will Be White” and “Clean Blood.” Opposition lawmakers called the event a disgrace. Some 60,000 people showed up for the rally, many of whom said they were only there to celebrate the country’s 99th anniversary of independence. Many government officials have responded to interna- tional criticism but avoided an outright denunciation of the march and the nationalist sentiment shared by much of the base that has kept it in power. The Law and Justice Party swept into office in 2015, decrying what it described as corrupt postcommunist elites and promising a fairer division of spoils from the country’s economic transformation. It has opposed immigration from Muslim countries and chafed against European Union rules— particularly on refugee policy. Late Monday, Polish President Andrzej Duda, a former member of the party who has recently butted heads with it, said there was no place in the country for anti-Semitism and “sick nationalism,” some of the strongest words of condemnation. Earlier, the foreign ministry strongly condemned “views springing from racist, anti-Semitic or xenophobic convictions,” but defended the march as an event attended by “thousands of people who wanted to peacefully manifest their patriotic feelings.” Poland’s criminal code bans promoting racist political movements or ideas. Patryk Jaki, a deputy justice minister, called the banners shameful and said there should be an investigation. But he added that he “wouldn’t want the few banners to eclipse the idea of the whole march.” A spokesman for the prosecutors’ office in Warsaw said police were investigating and were expected to pass on relevant evidence. The march, which has taken place annually since 2010, commemorates the anniver- DONAT BRYKCZYNSKI/BE&W/ZUMA PRESS BY WIKTOR SZARY Some 60,000 people marched in Warsaw to commemorate Poland’s Independence Day on Saturday. sary of Poland regaining its independence in 1918. It has grown increasingly popular. One of the organizers, the National Radical Camp, presents itself as the heir to a 1930s fascist movement of the same name, which worked to rid Poland of Jews in the years just before the Holocaust. The second group, All Polish Youth, is also named after an antiJewish interwar movement. Grzegorz Schetyna, head of Poland’s largest opposition, center-right Civic Platform party, said ruling-party officials, including the powerful party chairman Jaroslaw Kaczynski, were “political fathers” to the Saturday events. European Commission Vice President Frans Timmermans is due to talk about the situation in Poland in a debate with the European Parliament in Strasbourg, France, on Wednesday. of the biggest dividend payers in the U.S., but it has struggled to generate profits and cash flow from its industrial operations in recent years to cover the payout. “We understand this is an extremely painful action for our shareholders, our owners,” Mr. Flannery said. “It’s not a decision we took lightly.” The company, one of the original members of the Dow Jones Industrial Average and one of the most widely held U.S. stocks, has paid a dividend since 1899. GE last cut its dividend in 2009, when it reduced the payout to 10 cents a share from 31 cents. When he was named CEO in June, Mr. Flannery said the dividend was safe, but he recently warned that his thinking had evolved during his portfolio review. On Monday he said the company’s cash flow projections have changed dramatically. “Fundamentally that dividend was predicated on us growing to a certain level that we just didn’t see,” he said. Former CEO Jeff Immelt referred to cutting the dividend as the worst day of his tenure. Mr. Immelt revamped the company over his 16 years, including selling media, plastics, appliances and most of financial services. He also made some ill-timed deals in the oil and power markets. While the company changed substantially, it didn’t increase cash flow. Earlier this year, under pressure from Trian, Mr. Immelt pledged to cut annual spending by $2 billion. After lowering financial targets last month, Mr. Flannery pledged to cut an additional $1 billion in spending, though he gave few new details Monday on his cost-cutting plans. He did promise to cut $400 million from GE’s digital efforts, which had been a priority during Mr. Immelt’s tenure. —Cara Lombardo contributed to this article. GE Continued from Page One long-term plan means the shares will be “dead money” in the interim. “If that is all you were going to say, why did we have to wait from July until November?” she said. Mr. Flannery said he wasn’t surprised by Monday’s sharp selloff. “We announced a major cut in our dividend and a major cut in our guidance in 2018,” he said after the meeting. “We had disappointing news today—no sugarcoating that.” It may be a challenge for Mr. Flannery to fetch top prices for some of the businesses he identified as noncore, since some of them are in cyclical industries that are under pressure. GE also has owned some of the businesses for decades, meaning it could face a big tax hit on a straight sale. Mr. Flan- nery said GE could choose to spin off assets or form joint ventures instead. The company set new financial targets for 2018 that were well below its previous goals. It now expects adjusted earnings per share of $1 to $1.07. For years, GE had promised investors it would deliver $2 a share in 2018 earnings. The company changed CEOs earlier this year as it began to struggle to reach that target. Mr. Flannery compared his first 100 days as CEO to his previous role running GE’s health-care division. There was pressure to sell that unit when he arrived as CEO in 2014, but he found a way to fix the unit’s problems while still keeping open the option to unload it. The CEO, who has been with the company for three decades, said he is building a leadership team of “fresh eyes and people with institutional memory.” Since he took over he has made several management changes. ALWYN SCOTT/REUTERS FROM PAGE ONE GE Chief John Flannery said conditions will be difficult. He appointed a new finance chief and head of GE Power, and two GE veterans, the head of marketing and the top international executive, recently announced their departures. On Monday, Mr. Flannery said he is revamping compensation for senior executives, lowering the cash portion and giving 50% of their pay in equity. In addition to shedding its century-old transportation and lighting businesses, Mr. Flannery said the company would look to sell its stake in Baker Hughes, an oil-field-services provider. GE owns about twothirds of the company, which has a market value of about $40 billion. Shares of Baker Hughes fell 3.2% on Monday. GE also unveiled a restructuring of its board of directors, saying it would reduce its membership to 12 people, including three new members. GE currently has 18 directors, including Mr. Flannery and Ed Garden, a co-founder of activist Trian Fund Management, which is a large GE investor. The new quarterly dividend will be 12 cents a share, down from 24 cents a share. GE would reduce the payment from $8.4 billion to $4.2 billion, or a dividend yield of about 2.5% based on Monday’s close. The industrial giant is one For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A14 | Tuesday, November 14, 2017 Continued from Page One gled into the U.S. Most of the relics were seized by federal authorities, and Iraq has since petitioned the Justice Department to return items that Iraqi officials believe were stolen from their country. Archaeologists and biblical scholars now say there are questions about the origins and authenticity of the rest of the Green collection. That has scared away some researchers from the collection and the Bible museum over concerns about working with possibly looted antiquities. It has also cast a shadow over the Nov. 17 opening of the museum the Green family built, in part to house its collection. “The Greens are good people, and they wanted to find important artifacts to study, but the situation may end up hurting some of the scholars and students they wanted to help,” said Josephine Dru. She was curator of the collection’s papyri for more than three years until she left last fall, in part, over the museum’s handling of manuscripts with no clear ownership records. Mr. Green and his family have amassed a $205 million collection of roughly 40,000 artifacts over the past eight years, spanning Egyptian mummy masks from the time of Moses to sacred scrolls inscribed by rabbis and monks to a copy of the Bible once owned by Elvis Presley. The collection was planned for inclusion in the 430,000 square-foot Museum of the Bible. That’s as big as the Smithsonian’s new National Museum of African American History and Culture. Yet for the past three years, staff members at the museum have been sifting and rejecting potential donations from the Green collection that carried lingering questions of provenance, its director David Trobisch said. Most of the Greens’ antiquities remain with Hobby Lobby, the family owned artsand-crafts chain. Mr. Green said his 2010 purchase in Dubai was the misstep of an amateur, an unfortunate mix of enthusiasm and inexperience. Boxes of the items shipped to the Hobby Archaeologists and scholars say there are questions about the Green collection. Lobby headquarters in Oklahoma were mislabeled as “ceramic tiles,” and several boxes slipped undetected past U.S. customs inspectors before the scheme was uncovered, according to authorities. “We made mistakes, but we’ve learned from them,“ said Mr. Green, 54 years old. Mr. Green said he had no idea the deal would imperil the reputation of the museum he long championed. Among academicians, the matter remains unresolved. Bible scholars Candida Moss at the University of Birmingham and Joel Baden of Yale have just published a book, “Bible Nation: The United States of Hobby Lobby,” that said Mr. Green acquired objects with a “naiveté that begins to look willful.” Roberta Mazza, a papyrologist at the University of Man- DANCE Continued from Page One chemistry and the social sciences and for the overall winner. This year’s 53 entrants, hailing from universities in Brazil, the U.S., France and elsewhere, submitted performances about disrupting the rewarding properties of nicotine, set in part to “Purple Rain,” as well as a Bhangra-style dance using a remix of the “Game of Thrones” soundtrack meant to explain how a mutated tumor suppressor affects metabolizing nutrients. Past videos have had soundtracks ranging from Tchaikovsky to Notorious B.I.G., and dancers playing characters with titles like “photon,” “spermatocyte” and “Polio virus.” Nancy Scherich, the Ph.D. candidate at the University of California, Santa Barbara, who engineered the aerial performance, recruited friends from In the beginning The grandson of a Pentecostal preacher, Mr. Green grew up in the small town of Bethany, Okla. His father, David, transformed a pictureframe business into a chain of more than 750 retail stores. The elder Mr. Green remains chief executive of the family business, which last year had $4.4 billion in sales. Steve Green married young and joined the family business. He stepped onto the public stage after the company won a Supreme Court case three years ago to exempt it from a federal manher dance troupe to help. Before the project, Ms. Scherich said the other dancers never asked much about what she studied. “It was, ‘Oh, she does math. That’s weird. Let’s dance.’” Once they began discussing the rationale behind the choreography, she said, “They were interested all of a sudden. To me, that was a huge success.” Last year’s contest winner was Jacob Brubert, who spent years as a Ph.D. student at the University of Cambridge trying to make a better prosthetic heart valve. While the dancing cow and pig, stand-ins for an animal-based artificial valve, embrace the hula-hooping woman (representing blood), another blood cell gets shoved into a pool by a tap-dancing duo representing a mechanical valve. “Every scene was a couple of years of thinking,” Dr. Brubert said. “It just seemed like the coolest, craziest way to turn a rather large book that will probably only be read by a handful of people into something that Steve Green, Hobby Lobby president and chairman of the Museum of the Bible in Washington, D.C. Centers of Sacred Works Religious museums are rare, but these institutions are known for exploring issues—and objects—of faith. Museum of the Bible Washington, D.C. Built in 2017 Museum of Islamic Art Qatar Built in 2008 Sweeping the Bible's history, this museum has 3,000 retired Torahs and a 3rd-century copy of Psalms 112-114. I.M. Pei designed this museum, which contains 800 Quran manuscripts and a 15th-century ‘chessboard garden’ carpet. Objects in collection: 2,840 Objects in collection: 800 Size: 430,000 square feet Size: 382,118 square feet lem’s biggest antiquities dealers, Mr. Green said, mostly families who had run shops for several generations. After the Dubai trip in 2010, Mr. Carroll said he twice told Mr. Green to end the purchase negotiations because of “issues of provenance” with the cuneiform tablets. He said Mr. Green told him, “My family is not averse to risk.” Mr. Green didn’t dispute Mr. Carroll’s account. Israeli authorities later said the dealers in Dubai churned out fake invoices and concocted histories for the Iraqi antiquities they sold to Mr. Green. Israel has since charged five dealers in Jerusalem with tax fraud for their part in orchestrating the deal. Emails to the men seeking comment weren’t returned. In summer 2010, a Hobby Lobby lawyer invited a cultural-heritage law expert from the DePaul University College of Law, Patty Gerstenblith, to give a presentation to Mr. Green, Mr. Carroll and others on the best practices for collecting antiquities. Mr. Summers, the museum’s president, said later it was intended to help Messrs. Green and Carroll steer clear of legal trouble. Ms. Gerstenblith said a staff member told her Mr. Green was considering buying pieces from Iraq. She emailed a report to Hobby Lobby that summarized her presentation. “An estimated 200,000 to 500,000 objects have been looted from archaeological sites in Iraq since the early 1990s; particularly popular on the market and likely to have been looted are cylinder seals, cuneiform tablets,” said the report, which was in court documents. “Any object brought into the U.S. with Iraq declared as country of origin has a high chance of being detained by U.S. Customs.” Hobby Lobby lawyers later told federal investigators they never shared Ms. Gerstenblith’s letter with Mr. Green, court papers said. Dead-end deal Jewish Museum New York Founded in 1904 Angkor National Museum Cambodia lection, a breathtaking pace for antiquities. Mr. Carroll said his job was to flag potential purchases. The Green family decided at closed-door meetings whether to buy. Often, Mr. Carroll said, he “had no idea an acquisition had been made until the items showed up” at company headquarters. Mr. Green didn’t dispute the description. Cary Summers, the Bible museum president, said Mr. Carroll was encouraged to seek out large private collections, which included a 10,000piece lot of biblical Americana in Maryland. Museums typically cherry-pick from private holdings rather than buy in bulk. Mr. Green accompanied Mr. Carroll on a few buying trips to Jerusalem and Europe between 2009 and 2011. The sellers included some of Jerusa- On Dec. 8, 2010, Mr. Green, through Hobby Lobby, agreed to buy the artifacts he had seen in Dubai. One of the dealers suggested shipping the pieces via FedEx. Mr. Green’s executive assistant agreed and wrote on Dec. 23 “as long as you keep the value of each package under $2,000, they will not have to forward it to our broker to clear it through Customs,” court documents said. Mr. Carroll said he didn’t advise Mr. Green’s assistant on the matter and that he was shocked the Greens proceeded with the deal after Ms. Gerstenblith’s presentation. Three days later, the dealer falsified the labels and shipped eight packages to Hobby Lobby, each valued from $250 to $300. The first three sailed through customs in Memphis, Tenn.; the next five were stopped and triggered the government investigation. By 2012, Mr. Summers said, Mr. Green decided to fire Mr. Carroll, who left behind scant notes on the provenance of thousands of purchases, according to two curators assigned to review them. Mr. Carroll said the Greens could have required the dealers to submit relics’ ownership history. “Admittedly,” he said, “it was not collected by me.” self well,” she said. “How could you make a physical dance video about things that aren’t physical?” After her boyfriend urged her to tap into her aerial dance skills, she devised a performance in which she and her fellow aerial dancers hung upside down creating braided loops, then entered a techno-club style world representing matrices. Her character, known as a kernel, ultimately saves herself from annihilation. “The more esoteric the subject, the better the dance,” said John Bohannon, a contributor to Science who created the contest a decade ago when he was working on his own Ph.D. in molecular biology and wanted to jazz up a party for colleagues. Some scientists take a more literal approach. Diana Davis, now a visiting assistant professor of mathematics at Swarthmore College, produced and danced in a 2012 video about her thesis, “Cutting sequences on translation sur- faces.” She said some other performances she’s seen have superfluous rhythmic features and unnecessarily complex plotlines. “I think they’re distracting,” she said. “Focus, people.” Dr. Davis’s work looks at closed-path loops, in which a journey along a line starts and ends at the same place—like along the equator—and what happens when the path is adjusted. Shot from a camera looking down from a ceiling, her video shows a dancer leaping across two adjoining pentagons. An arm disappears across the yellow-painted edge of one pentagon and reappears at the yellow edge of the other. Then a leg. Then the rest of the dancer, representing the connectivity across planes. “It’s art, in addition to being math,” Dr. Davis said of the finished product. She lists the production—which won the physics category—on her résumé and shows it regularly during academic speaking engagements. Built in 2007 It owns a section of a 16th-century synagogue wall and shows the work of such modern painters as Amedeo Modigliani. This museum chronicles the golden era of the Khmer Empire, including a gallery featuring 1,000 Buddhas. Objects in collection: 30,000 Objects in collection: 1,700 Size: 94,000 square feet Size: 161,458 square feet Source: the museums; Photos: Museum of the Bible; Museum of Islamic Art; Zuma Press (Jewish Museum); Reuters (Angkor) THE WALL STREET JOURNAL. date to pay for certain contraceptives for its workers. The family had argued the requirement conflicted with its Christian faith. For Mr. Green, who remains influential in evangelical circles, the dream of building a Bible museum helped inspire him to collect antiquities. He said he knew from the start that he would need expert help. In 2009, Mr. Green started working with Scott Carroll, who had been the adviser for Robert Van Kampen, a Chicago investor who had the largest private Bible collection in the U.S. at the time. That collection became part of a religious theme park in Orlando, Fla., called the Holy Land Experience. Mr. Carroll, who has a doctorate in history from Ohio’s Miami University, was contro- versial in the field of antiquities for using a soapy solution to break apart the papyrus layers that form mummy masks. In a 2012 video, filmed by a research arm of the Green collection, Mr. Carroll washes a kohl-eyed, papery mask in a sink, then peels it apart looking for scraps of legible writing. “Archaeology is a destructive science,” he tells onlookers in a later video. Holger Strutwolf, director of the Institute for New Testament Textual Research at the Bible Museum in Münster, Germany, said, “The way Scott Carroll treats mummy cartonnage comes close to willful damage.” Mr. Carroll said other scholars have dismantled mummy masks. With Mr. Carroll on salary, the Green family went on a buying spree, adding roughly 18 objects a day to their col- DEAN MORALES BIBLE chester, has criticized Mr. Green’s collecting methods in lectures at scholarly conferences on art crime and biblical literature. She said she noticed an ancient Coptic fragment from the New Testament Book of Galatians, displayed at an exhibit of the Green collection three years ago, which she believed she had earlier seen for sale on eBay. It offered no ownership history, she said. “I don’t care if a billionaire wants to open a museum so long as it’s ethical,” Ms. Mazza said. The Bible museum’s director, Mr. Trobisch, said the Green collection’s records indicate the family didn’t buy the Coptic fragment on eBay. Still, he said, the museum has no plans to exhibit it “until we can research it thoroughly.” Mr. Trobisch recently advised Mr. Green to repatriate the fragment to Egypt, which Mr. Green said he would consider. When the museum opens, its permanent collection will consist of just 2,840 vetted objects, Mr. Trobisch said, a fraction of what the Greens own. The museum has had to distance itself from controversy over the collection, he said: “We feel like we’re paying for the sins of the father.” Jana Mathews, a medievalist at Rollins College, said scholars insist on knowing the provenance of objects because demands for proper paperwork discourages looting. The museum has shifted its focus from displays of ancient art and artifacts to more interactive, theme-park experiences. Rooms will give a firsthand view of life in biblical times, including a life-size village in first-century Galilee. Elsewhere, walk-through exhibits will re-enact famous Bible stories—like Moses parting the Red Sea. An aerial-simulation ride will zoom passengers around Washington, D.C., to view scriptures inscribed on buildings. Museum of the Bible Vice Chairman Robert Cooley said the board learned about the government’s six-year smuggling investigation only when Hobby Lobby was close to signing the settlement. He said the museum board felt “shortchanged on the facts” and has since hired its own lawyer to help the board toughen its provenance protocol and keep close watch on acquisitions. Mr. Green said he didn’t tell the board sooner because he considered it a Hobby Lobby matter. Last month, the board also hired its own cultural-heritage lawyer, Thomas Kline, to vet the pieces remaining in the museum’s collection. “Before this, we weren’t collectors or museum-goers,” Mr. Green said. “We didn’t know we needed to ask for all this paperwork.” STEPHEN VOSS FOR THE WALL STREET JOURNAL IN DEPTH Nancy Scherich, a mathematician, dances out her Ph.D. thesis. has now been seen by an awful lot of people.” His performance has garnered more than 80,000 views on YouTube since last fall. This year’s winner, Ms. Scherich, spent about two months mapping out her performance, sketching storyboards and choreographing a dance inspired by her thesis, titled “Braids: Discrete Representations of the Braid Groups.” She said she had known of the contest for years but struggled to imagine her own work in terms of dance. “I never really thought that math could lend it- For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | A14A NY * * GREATER NEW YORK Tax Lawsuit Will Test Gun Protections GOP Proposals Sandy Hook families challenge federal shield for gun makers against liability claims Nearly five years after a shooter killed 20 children and six adults at Sandy Hook Elementary School, a lawsuit brought against the gun industry by families of those killed is slated to be heard Tuesday in Connecticut’s highest court. The case will be a test on the federal protections that firearms manufacturers have against liability claims. In their 2014 lawsuit, attorneys for the victims’ families said civilians shouldn’t be allowed to own high-powered rifles. The defendants have maintained they are exempt from legal claims holding them responsible for crimes committed with their products under a 2005 federal law called the Protection of Lawful Commerce in Arms Act. In the Newtown, Conn. shooting, 20-year-old Adam Lanza used a Bushmaster AR-15-style rifle manufactured by the Remington Arms Co. Connecticut Superior Court Judge Barbara Bellis dismissed the Sandy Hook case in October, saying the families failed SPENCER PLATT/GETTY IMAGES BY JOSEPH DE AVILA A vigil was held last month in Newtown, Conn., calling for action against gun violence. to prove that the gun manufacturer could have predicted misuse of the weapon. Now, the Connecticut Supreme Court will rule on whether the families’ claim can proceed. James Vogts, an attorney for Remington, declined to comment. Josh Koskoff, a lawyer representing the nine families of victims and one survivor of the school shooting, wasn’t available to comment. The other defendants named in the lawsuit are Camfour Inc., a firearms distributor, and Riverview Sales Inc., the East Windsor, Conn., gun shop that sold the Bushmaster rifle used in the Sandy Hook attack. Attorneys for the companies didn’t immediately respond to requests for comment. Legal claims against the gun industry have had little success since the passage of the 2005 federal law. Courts have allowed lawsuits against gun sellers who knowingly sell their weapons to individuals barred from purchasing them. But gun makers have been exempted from most claims, except those involving allegations of faulty products. Attorneys for Remington said in court papers that the federal law intended “to protect firearm manufacturers and sellers from having to defend themselves against claims exactly like those made here.” The federal law allows some legal claims to move forward. One such exemption, which the families are pursuing, is a claim of “negligent entrustment” in which a seller of product knows, or should know, that the buyer likely would misuse that product. The “defendants ignored myriad risks associated with the mechanical power of the weapon, the porous environment into which it was sold, and mounting evidence that the AR-15 had become the weapon of choice for lone shooters looking to inflict maximum casualties,” attorneys for the families said in court papers. The families also alleged the gun maker violated the Connecticut Unfair Trade Practices Act, a consumer-protection law. The lower court ruled that the families lacked the commercial or consumer relationship with the gun company required to make such a claim. Connecticut’s Attorney General’s office submitted an amicus brief supporting the families’ consumer-protection claim. The National Rifle Association, the National Shooting Sports Foundation and the Connecticut Citizens Defense League have submitted briefs in support of the defendants. Menendez Jury Split, But Must Continue Working SETH WENIG/ASSOCIATED PRESS Sen. Bob Menendez left a federal courthouse in Newark on Monday. Jurors in his corruption trial said they are deadlocked. sentence. The jury began meeting at 11 a.m. Monday. Although it was the fifth day of deliberations, Judge Walls ordered the panel to start fresh because one juror was replaced last week. “We cannot reach a unanimous decision on any of the charges,” the jury said in a note to the judge three hours later. “Is there any additional guidance? What do we do now?” Defense attorney Abbe Lowell called for a mistrial. “It seems to me we should take them at their word.” Judge Walls disagreed. He said he would ask them to keep deliberating. “Go home and have a good meal and a good sleep, then come back tomorrow to continue your deliberation,” he said. After the jury left the courtroom, Mr. Lowell objected. “It feels a little like you’re telling them that you need to reach a verdict,” he said. “This is a tried and true method,” Judge Walls replied, overruling the objection. “Clearly there are jurors who believe in my innocence,” Mr. Menendez said outside the courthouse. “I believe no juror should be coerced.” Deliberations were delayed Monday while the attorneys argued about whether the jury may have been affected by press coverage of the departure of juror Evelyn Arroyo-Maultsby last week. Ms. Arroyo-Maultsby, who was excused to go on a cruise for a family wedding, said she would have voted to acquit Mr. Menendez. Outside the courthouse Thursday, she said most jurors think the defendants aren’t guilty, including three jurors who are absolutely convinced. Another group is equally firm on the other side, she said. On Monday, after the judge and attorneys met individually with four jurors and three alternates, the judge decided that deliberations would proceed. Marley Dias drew international attention last year when she decided to do something about what she felt was a lack of diversity in literature at her school. Her blog post calling for donations of books featuring black girls as main characters turned into a viral social media campaign dubbed #1000blackgirlbooks. Within a month, people from around the world sent Marley more than 4,000 books. Now 12 years old, the eighth-grader from West Orange, N.J., has written the book she felt was missing from public schools: a story about a black girl by a black girl. “Marley Dias Gets It Done: And So Can You!” is being published by Scholastic Inc. and will be released Jan. 30. Marley said she wanted to use her own experience in activism to show anyone can make positive changes in their communities despite their age. “I’ve always wanted to be an author,” Marley said in a recent interview. “I don’t really like my creative writing and I didn’t want to write a memoir because I’m like 12. Why write a memoir when you’re 12?” One chapter, “The Activist’s Toolbox,” is a blueprint for young people seeking to make social change. Another, titled “Herstory,” touches on her book drive, which has now collected more than 10,000 books. “The only books we’d read with black characters at school were slave narratives set in the eighteenth and nineteenth centuries,” Marley writes. “Which, while extremely important historically, can get depressing. The range of black girl experiences is so much broader, and deeper, and richer than that!” Lionel Hush, principal of Marley’s current school, Roosevelt Middle School, said her campaign improved the school’s literature offerings. “Coming from a student’s perspective, it QUEEN LILIUOKALANI TRUST Student ‘Gets It Done’ With Her Own Book BY ZOLAN KANNO-YOUNGS BY KATE KING BERKELEY, N.J.—New Jersey Rep. Tom MacArthur brought in the big guns on Monday as he sought to sell the Republicans’ proposed tax overhaul to constituents in one of the country’s most highly taxed states. Treasury Secretary Steven Mnuchin and Ivanka Trump, the president’s daughter and adviser, touted the two proposals under consideration in Congress, saying they are long overdue measures that would simplify the tax code and stimulate economic growth. The discussion came as Republicans in Washington, D.C., and Mr. MacArthur pushed for votes this week on bills that they hope will mark the GOP’s first significant legislative achievement under Republican President Donald Trump. Democrats and some Republicans from highly taxed states such as New Jersey, New York and California are opposed to the GOP’s tax proposals, which would eliminate or cap deductions for state and local taxes. In New Jersey, GOP Reps. Leonard Lance and Frank LoBiondo have said they don’t support the legislation under consideration in the House, which would cap the property-tax deduction at $10,000 and allow no deductions for state income Treasury Secretary Steven Mnuchin and Ivanka Trump visited N.J. to promote bills. BY THOMAS MACMILLAN Just three hours after they restarted their deliberations Monday, jurors in the corruption trial of U.S. Sen. Bob Menendez announced they were deadlocked. Judge William Walls sent the jury home early from federal court in Newark and told them to return Tuesday to continue trying for a verdict. The panel’s seven women and five men are charged with deciding the fate of Mr. Menendez, who faces 18 counts, including bribery, fraud, and conspiracy. Prosecutors say the twoterm Democratic senator was part of a bribery arrangement involving Florida eye doctor Salomon Melgen, a co-defendant in the trial. For years, the doctor provided the senator with private flights and luxury vacations in exchange for political favors, they allege. Their lawyers say the government is criminalizing a longstanding and genuine friendship. If convicted, Mr. Menendez could serve prison time. The most serious charge carries a maximum 20-year Get Boost From D.C. Notables Marley Dias, in Honolulu in August, has traveled the U.S. talking about the need for diversity in books. carries a significant amount of weight,” Mr. Hush said. Andrea Pinkney, executive editor of the trade publishing division of Scholastic, said she hopes the book encourages children to “galvanize their strengths.” She declined to specify the value of Marley’s book deal. In anticipation of the book’s release, Marley has traveled the country emphasizing the importance of diverse characters in school books. She has met former first lady Michelle Obama, ballet dancer Misty Copeland, singer Rihanna and filmmaker Ava DuVernay. Marley has almost 15,000 followers on Instagram. Marley said she has contin- ued to meet children who feel they can’t relate to what they are studying in school. “I feel like when I’m older— like older, older—I guess I’ll feel like, ‘Wow, when I was doing that, that was a lot for a 12year-old to do,’ ” Marley said. “But now it’s part of my life. Not just being in the public eye but thinking about social change.” taxes. The Senate’s bill eliminates the deduction entirely. Mr. MacArthur, a Republican who represents southern New Jersey’s Ocean and Burlington counties, said he won’t support the tax bill without a propertytax deduction, and believes the $10,000 deduction would cover “the vast majority of people in this state.” He said the effect of taking away deductions for state income and sales taxes would be offset by lower rates overall and the elimination of the alternative minimum tax. Federal deductions for state and local taxes make up 8.7% of adjusted gross income for New Jersey filers, according to an analysis by the Tax Foundation. Mr. Mnuchin, a former resident of California and New York, said he understands the plight of residents in highly taxed states. The Treasury has calculated that the proposed tax overhaul would deliver tax cuts for most families of four and people earning up to $300,000 in New York and New Jersey, he said. “For people who make $1 million in hightax states, there will be a tax increase,” he said. Mr. Mnuchin and Ms. Trump discussed the tax plans in front of a largely friendly crowd of more than 100 in Berkeley Township, a shorefront community that was battered by superstorm Sandy. More than half of the town’s residents are senior citizens and tax deductions are important, Republican Mayor Carmen Amato said. He supports the House’s proposed tax overhaul. Mr. MacArthur said that if a deduction for medical expenses also is preserved, as the Senate bill proposes, most New Jersey residents should benefit. “I have gone through every tax bracket from the very poorest to the very wealthiest,” he said. “I have yet to find anybody whose taxes don’t go down.” Rep. Josh Gottheimer, a Democrat who represents parts of northern New Jersey’s wealthy Bergen County, said his constituents would see tax hikes. “There’s no way to cut these numbers that it’s not an increase on New Jersey and a huge favor to other states at our expense.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A14B | Tuesday, November 14, 2017 NY THE WALL STREET JOURNAL. * * GREATER NEW YORK ‘Meteor Shower’ Lights Up Broadway ASSOCIATED PRESS BY CHARLES PASSY Amy Schumer stars in ‘Meteor Shower,’ a play by Steve Martin. Call it a meteoric success, Broadway-style. “Meteor Shower,” the Steve Martin play that stars Amy Schumer, took in $1 million at the box office last week, according to the Broadway League, the trade group that tracks the theater industry. That figure represented 104% of the show’s potential standard gross. The extra sales came from premium tickets, which ran as high as $323 last week. It was the first full eightperformance week for “Meteor Shower,” which is still in previews. The comedy, which officially opens Nov. 29 and is slated to run through Jan. 21, looks to continue the box-office success in the weeks ahead because it already has at least $7 million in advance sales, according to Joey Parnes, one of the lead producers. Show insiders and industry observers say the sales speak to the drawing power of Ms. Schumer, the stand-up comic and film and television veteran who is making her Broadway debut with the production. Mr. Parnes noted the other major names associated with “Meteor,” including Mr. Martin and the Tony Award-winning director Jerry Zaks. The cast also features Keegan-Michael Key, who is best known for his work with Jordan Peele on “Key & Peele,” a show on the Comedy Central network. When all the elements are factored into the production’s equation, Mr. Parnes said, “the whole is greater than the sum of its parts. Every single name on our creative team is one form of entertainment royalty.” “Meteor Shower,” which chronicles two couples en- meshed in what the show describes as a “marital free fall,” was produced at a cost of $3.9 million, according to Mr. Parnes. Insiders say it is on track to recoup its investment. A major celebrity’s involvement with a show doesn’t guarantee box-office success. Consider Mr. Martin’s previous Broadway effort, the 2016 musical “Bright Star,” which he created with the pop singer-songwriter Edie Brickell. The show closed after four months into an open-ended run, though it is now playing on tour. Christopher DeJesus, center, and Thad Maceira of Cano’s Car Wash clean a customer’s car at the intersection of Westchester and Forest avenues in the Bronx. Sam ‘Cano’ Pesante, below left, owns the pop-up car wash operation. Below right, a New York Police Department officer asks Mr. Pesante if he will be available to detail his personal car after he finishes his patrol. Pop-Up Car Wash Offers Vehicle Owners Pit-Crew Style Detailing where Mr. Pesante has set up his operation. Pop-up car washes like this can be found across the borough. Starting in December, operators must obtain a car wash license. Mr. Pesante started his operation this summer after buying a cargo van and outfitting it with a 375-gallon water tank. “Brick-and-mortar car washes are less personal and the ancient machinery damages the paint jobs of cars,” said Hector Figueroa, who brought his Jeep for a wash. “Curbside car washes are more personal and they don’t damage your car.” —David ‘Dee’ Delgado DAVID ‘DEE’ DELGADO FOR THE WALL STREET JOURNAL (3) Drive down Westchester Avenue in the Bronx and you may notice the cargo van parked next to flags emblazoned with “Car Wash” flapping in the wind. The van hosts three men working like a pit crew. One prepares soaps and conditioners specific to each customer’s request, the second pre-washes with a pressure washer while the third lathers the surface close behind. In 15 minutes or less they are done with what owner Sam “Cano” Pesante calls a mini detailing service. He charges $25. There are few other options for a car wash in the Woodstock neighborhood of south Bronx GREATER NEW YORK WATCH A new way, a better way NEW YORK STATE NEW YORK CITY Economic Programs Mayor Seeks Ideas Hearing Grows Tense On Internet Access to buy a wedding suit. ROBERTO COIN BOUTIQUE Westﬁeld World Trade Center Oculus | Main Level C2 New York, NY | 212.287.1299 BLACK JADE COLLECTION | robertocoin.com A legislative hearing on Gov. Andrew Cuomo’s economic-development programs has raised tensions between his administration and upstate legislators. Mr. Cuomo, a Democrat, has sought to revive the ailing upstate economy through a number of tax-break programs and public-spending initiatives, but parts of western New York have continued lagging in job growth. On Monday, at an annual hearing in Albany, Mr. Cuomo’s economic-development czar, Howard Zemsky, presented a rosier picture, saying the confluence of economic initiatives is having a “transformative impact” throughout upstate and western counties. State lawmakers are skeptical. Assemblyman Ray Walter, a Republican representing Erie County, said Mr. Zemsky only offered “platitudes,” and didn’t convince him that there was a connection between Mr. Cuomo’s programs and economic improvements. As Mr. Walter questioned Mr. Zemsky, the Cuomo aide said the Buffalo area Mr. Walter represents was struggling “for 40 frickin’ years” before Mr. Cuomo stepped in. At another point Mr. Zemsky spoke over Mr. Walter, saying, “Blah, blah, blah.” After the hearing, Mr. Walter said, “For him to get hostile was outrageous.” —Mike Vilensky Mayor Bill de Blasio’s administration wants advice from companies about how to expand affordable high-speed internet access citywide by 2025. The city on Tuesday plans to issue a request for information to internet-service providers and other stakeholders. The request is short of a formal solicitation for proposals for a build-out that could challenge cable giant Charter Communications Inc.’s market dominance in New York City. The request is meant to “maximize the benefits of competition,” according to a draft reviewed by The Wall Street Journal. “One thing we know for sure is that business as usual won’t work, which is why we’re keeping the door open to new ideas that will help us achieve success in this critical endeavor,” Miguel Gamiño Jr., the city’s chief technology officer, said in an emailed statement. A spokesman for Charter Communications, known to its customers as Spectrum, said New York City is “one of the most competitive telecom and internet markets in the country, with a host of wireline, wireless and other technologies offering services to all customer segments.” “Our products and services provide the highest quality at competitive prices,” said the spokesman, John Bonomo. —Mara Gay For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. LIFE&ARTS Tuesday, November 14, 2017 | A15 TURNING POINTS | By Clare Ansberry Cultivating a Life of Gratitude A SIMPLE “THANK YOU” isn’t always enough. Yolanda Avram Willis has spent much of the past two decades finding out as much as she could about the families who risked their lives to save her Jewish family during the Nazi occupation of Greece. She wanted to chronicle their good deeds and give thanks— and do so before it was too late. “I’m 83,” she says. “I don’t know how long I am going to be around. I wanted to do this while I have my mind.” Her mother and aunts suffered from some forms of dementia. Ms. Willis recently completed a book about her family’s experience, “A Hidden Child in Greece: Rescue in the Holocaust,” which she selfpublished through Authorhouse. The process helped her, too, giving her purpose and deepening her appreciation, says her son, Martin. “The act of writing can help flesh out experiences and makes you understand things better,” he says. Feeling gratitude starts with a realization of what we have received from others and what it cost them, says Robert Emmons, a psychologist and author at the University of California, Davis, who researches the effects of gratitude. It isn’t surprising then, he says, that someone like Ms. Willis “has overwhelming gratitude.” Gratitude is good for us in many ways. Studies have shown that it strengthens our immune systems, helps us sleep better, reduces stress and depression and opens the doors to more relationships. But to reap those rewards, we need to do more than feel grateful. “The word ‘thanksgiving’ means giving of thanks,” says Dr. Emmons. “It is an action word. Gratitude requires action.” Most people aren’t very good at it. Only 52% of women and 44% of men express gratitude on a regular basis, according to a 2012 gratitude survey of 2,000 people in the U.S. funded by the John Templeton Foundation, a philanthropic organization that supports academic research. Those who are religious or spiritual tend to be more grateful, as are married couples, says Janice Kaplan, author of “The Gratitude Diaries,” who conducted the survey. Younger people—18-to-24-yearolds—express gratitude less often than any other age group, and when they do, it’s often for self-serving reasons: in the hopes that people will be nicer to them in return. Family and freedom top the list of things that those surveyed are most grateful for, Ms. Kaplan says. Jobs rank last, except among those who earn $150,000 or more. Apparently we don’t appreciate our co-workers, or at least we don’t tell them. Only 10% of the 2,000 people surveyed said they thanked their colleagues. One reason: a perception that expressing any gratitude could lead to co-workers tak- Ms. Willis’s family had fled to Crete and was in hiding there when German troops began an airborne attack of the island on May 20, 1941. FROM TOP: ROSS MANTLE FOR THE WALL STREET JOURNAL; YOLANDA AVRAM WILLIS (3) The strangers who helped a woman’s family during WWII gave her a clearer view on giving thanks ing advantage of them, Ms. Kaplan found—even though it actually encourages success. (Some 81% of people in the survey said they would work harder for a grateful boss.) People can get better at being grateful, but it takes practice. Dr. Emmons recommends keeping a gratitude journal. Writing one to three times a week about people, events and things that make you feel grateful is more effective than daily entries—and don’t worry about grammar. It’s important to be specific so you can realize all that went into an effort. Paul Mills tried out the idea with a group of about 50 to 60 heart patients at the Center of Excellence for Research and Training in Integrative Health at the University of California, San Diego, where he is director. The patients kept journals for two months, recording things they were grateful for. Family, friends and nature topped the lists. Some wrote only a few words, others wrote pages several days a week. But everyone who kept a journal was less depressed, slept better and had lower levels of inflammation than those who received the usual care but didn’t keep a journal, Mr. Mills says. People are understandably most grateful when something good happens. Finding gratitude in heartache, loss, pain or trauma is more difficult. But it can also help us become more resilient and deepen our appreciation of what we do have, including the people who helped us through. Ms. Willis, who wrote about her experiences during the Holocaust, was 6 when war broke out in Greece, forcing her well-known Jewish family to flee their home. For the next four years, they were constantly relocating to avoid capture. She and her younger brother, Yannis, were separated from their parents, Salvator and Karolla. A baker and his family took Ms. Wil- Yolanda Avram Willis, pictured in her Pittsburgh home, wrote a book about her family’s experience in Greece during the Holocaust. Ms. Willis as a child with her younger brother, left. Her father’s false identification papers, below. lis in, saying she was their goddaughter whose parents couldn’t afford to feed her. Later, she lived with a widower. Ms. Willis never knew her parents’ whereabouts, the thinking being that if she was captured, she might reveal their location. After four years in hiding, Greece was liberated and the family was reunited. Ms. Willis devoted herself to her studies and eventually went to the U.S. on a Fulbright Scholarship to study chemistry. She settled in Pittsburgh, married, raised three children and obtained her Ph.D. in sociology from the University of Pittsburgh. Her parents and brother remained in Greece; her father died in 1965 and her mother in 1987. In 1992, her brother died. Troubled and erratic as a child, Yannis was eventually diagnosed as paranoid schizophrenic. Although they were never close, Ms. Willis says, his death touched her deeply and sparked her search of their past. She made the first of several trips back to Greece in 1994 and was reunited with her rescuers. Over the course of decades and interviews, Ms. Willis discovered that the baker and his family who took her in were forced into hiding and hunted by the Nazis for hiding her. “It took multiple encounters for the story to come out,” she says. She remembers weeping in her hotel room while listening to her taped interviews. In her book’s dedication, Ms. Willis lists each of the 20 people who helped along the way. Many of them have died, but some of their children and grandchildren are alive. It’s important for them to know their parents’ selflessness, she says. Ms. Willis also dedicated her book to her parents, “who taught me gratitude.” During one of her return trips to Greece, she learned that her grateful father had returned to Crete every Easter to celebrate the Christian holiday with her rescuers. FOOD & DRINK BY SAABIRA CHAUDHURI TEA, THE WORLD’S most popular hot beverage, has long struggled with an image problem: People just aren’t willing to pay up for a cup. Now tea makers are launching new drinks and marketing campaigns to convince people to pay as much for a cup of herbal tea as they would for a caffe latte. “Our mission is to create a modern-day tea culture,” says Charlotta Oldham, Starbucks Corp.’s tea category manager for Europe, the Middle East and Africa. “I totally believe tea can be as cool as coffee.” By volume, tea remains the dominant hot beverage of choice, buoyed by drinkers in China, India and the U.K. The world drank 1.7 trillion cups of tea last year, comfortably above the 984 billion cups of coffee consumed, according to Euromonitor. In the U.S., the number of cups of tea drunk climbed 6.5% between 2012 and 2016, while tea sales grew 9.9%, meaning more people are drinking pricier tea. But the coffee industry rakes in far more money, clocking a retail value of $79.3 billion in 2016, compared with $42.7 billion for tea. “The coffee boys have done a much better job in marketing their category than the tea boys,” says William Gorman, executive chairman of the U.K. Tea and Infusions Association. Over the past 50 years, the coffee industry has boomed on the back of a specialist coffee-shop culture that has helped the industry charge fat premiums, although there are signs growth is slowing. “Meeting for a coffee” has become synonymous with socializing, dating and business meetings, even in typically tea-drinking nations such as the U.K. and India. Tea has struggled to spark the same appeal. Starbucks, widely credited with spreading coffee culture the world over through its 24,000 stores, in July said it would close its 379 stand-alone Teavana stores, citing underperformance. Starbucks still sells tea drinks in its regular cafes, but Howard Schultz’s promise to “do for tea what we did for coffee” remains unrealized. Some blame the tea bag—invented in 1908 when New York tea merchant Thomas Sullivan sent out samples in silk bags—for tea’s inability to command a premium. Chris Brennan recently left his local Starbucks in Albuquerque, N.M., empty-handed after discovering it charges $4 for a cup of tea. “I did a double-take,” recalls the 40-year-old soccer club director. “There’s no way I was going to pay that kind of money for a tea bag in hot water.” Tea companies are hoping betPlease see TEA page A16 GETTY IMAGES TEA TURNS UP THE HEAT IN ITS FIGHT AGAINST COFFEE For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A16 | Tuesday, November 14, 2017 LIFE & ARTS ART REVIEW Winslow Homer’s Transforming Odyssey An exhibition reveals how a sojourn in an English fishing village changed the American painter’s work Worcester, Mass. IF THE AMERICAN illustrator and painter Winslow Homer had been born in Italy or France a generation or two earlier, he might have depicted grand mythological scenes inspired by Ovid. But he was born in Boston in 1836 and died in Prout’s Neck, Maine, in 1910. By the time Homer was 19, when he began a lifelong career doing commercial illustrations and, soon thereafter, pursued oil and watercolor painting, the Realists had purged painting of traditional religious, historical and mythological subjects, and the Impressionists were on the verge of painting not the landscape but its light. Homer’s most celebrated dramas, then—some of them played out in the American countryside, but most set on coastlines and at sea—were Realist renditions of everyday struggles between nature and human beings elevated to mythical proportions. In his signature landscape “Hark! The Lark” (1882), which Homer considered his “very best” painting, three young women working in a field are suddenly halted by birdsong, a scene Homer transforms, through their repetitive gestures and startled expressions, into near melodrama. And he poses his actors like Greco-Roman pediment figures in his iconic seascapes “The Gale” (1883-93), in which a woman, a babe on her back, steels herself against the North Sea’s winds, and “The Life Line” (1884), the rescue of a woman in danger of being snatched back into roiling surf. These three paintings are among some 50 pictures by Homer in “Coming Away: Winslow Homer and England,” a splendid, thoughtprovoking exhibition at the FROM LEFT: PHILADELPHIA MUSEUM OF ART; MILWAUKEE ART MUSEUM BY LANCE ESPLUND Homer’s ‘Hark! The Lark’ (1882), above, and ‘The Life Line’ (1884), left Worcester Art Museum that travels this spring to Milwaukee. Co-organized by WAM’s Elizabeth Athens and the Milwaukee Art Museum’s Brandon Ruud, “Coming Away” poses fascinating questions about the fluid nature of aesthetic influence and about what it means to be an American, a New England or even a “Yankee” artist. From March 1881 to November 1882, Homer lived among the inhabitants and painters of Cullercoats, a small fishing village on England’s northeastern coast. The show posits that this trip—more, perhaps, than his years illustrating the American Civil War and Reconstruction, or his yearlong sojourn in France, from 1866-67—transformed Homer, enabling him to develop his mature vision as a renowned seascape painter. The argument, as presented here, is sound. “Coming Away” is divided into three sections: before, during and after his trip to England. Mixing Homer’s pictures with those of such painters as the British master J.M.W. Turner and the French Realist Jules Breton, as well as photographs depicting nature and Classical antiquities, it shows not just the power of artistic influence but the authoritative inspiration of place. Homer was infamously tightlipped concerning his personal life and influences. Yet, to walk through any major Homer exhibition is to sense the impact of Turner, the PreRaphaelites and the French painters Corot, Delacroix, Millet, Courbet, Gérôme and Manet. And it is also to experience Homer’s influence on Americans Howard Pyle, the Wyeths, John Marin, Arthur Dove and Norman Rockwell. Homer spanned Europe and America; Cullercoats appears to be the bridge. More often than not, his early pictures’ figures feel unnatural and overwrought. Homer treats his people, on whom he lavishes too many persnickety details, differently from their environments, losing a sense of the whole. In “Croquet Players” (1865), the figures appear to glide above the lawn. In such works as “Sparrow Hall” (c. 1881-82) and “The Mussel Gatherers” (1881-82), the spaces are light-filled and easy to navigate until you come to the figures, which feel stilted, staged and pasted onto their settings, like puppets in a toy theater. This problem persists in many of his early seascapes—his human subjects illustrated and posed, not interpreted and felt. Yet this approach changes considerably after Cullercoats. In “Moonlight, Wood Island Light” (1894), a canvas Homer probably painted on the beach, forms, paint, surf and light are integrated, active and immediate. And in “Driftwood” (1909)—perhaps his best and final major canvas, in which a fisherman is blocked from accessing the sea by a giant piece of driftwood—foreground, middleground and background all advance like a wave breaking against us. We feel immersed in the coastal spray and wind. In these late works, Homer buries the albatross of illustrator at sea. Coming Away: Winslow Homer and England Worcester Art Museum, through Feb. 4, 2018 Mr. Esplund writes about art for the Journal. PEET’S COFFEE TEA Continued from page A15 ter tea bags, teas that make wellness claims, and more inventive flavors could convince people to spend more. Mighty Leaf Tea Co. sells sheer hand-stitched pouches with ingredients such as camomile flowers, rose-hips peels and lemon myrtle from Croatia and Turkey. A pack of 15 tea bags sells for $9.95. The Peet’s Coffee & Tea-owned brand prints the suggested brew time on the tag. TeaPigs, an 11-year-old British brand available in over 35 countries, sells tea bags in flavors like chocolate flake, and licorice and peppermint. There’s a tea for a range of moods and woes: when you’re bloated, wired or hung over. Unilever PLC, the world’s largest tea maker, this year launched a range of green and herbal teas under its Lipton brand blended with essential oils. Wal-Mart sells a 15-bag pack of “Stress Less” and “Soothe Your Tummy” for $4.38, or 30 cents a bag, significantly higher than the 4 cents it asks for a bag of regular black Lipton. Unilever is also trying to move people away from the tea bag. In 2015 it launched a $210 capsule tea machine in Europe, which amends brewing time and temperature depending on the blend of tea. A box of 10 Darjeeling tea capsules sells for about $8. Cafes are now making more coffee-like tea drinks that people can’t easily whip up at home. Must use coupon code AV200S50 19999 $ zvox.com Reg. $249.99—use coupon code “AV200S50” and save $50* Can’t Hear Voices On TV? Mighty Leaf’s green tea tropical blend, which includes hints of pineapple and cornflowers. At Peet’s, best-selling items include a dirty chai latte for $5 and a matcha green tea latte—made from finely ground green tea leaves—for $4.20. Such tea drinks are “big revenue drivers” that deliver comparable margins to coffee, according to the company. Starbucks last summer began selling iced strawberry green tea, pineapple black tea and peach white tea in the U.S. for between $2.75 and $2.95—supported by a $9 million TV ad campaign touting their “feel-good” benefits. The drinks are flavored with fruit and botanical blends. U.K.-based Taylors of Harrogate, which owns the Yorkshire tea brand, recently launched a $9.2 million TV campaign aiming to put a quirky slant on English propriety. One spot features English indie rock band Kaiser Chiefs belting out a song at the Yorkshire Tea office while a receptionist puts a caller on hold. The tagline: “Where everything’s done proper.” Tea companies are also spending more on training staff. They say that seemingly minor things— when milk is added, whether fresh water is used and how hot it is— all contribute to making a good cup. “They need to develop the snob appeal and connoisseurship and make it like wine,” says Mark Pendergrast, author of “Uncommon Grounds: The History of Coffee and How It Transformed Our World.” “Tea has a hugely long, fascinating history, and that’s something they need to highlight.” EXTRA COMFORT IN EVERY STEP Our AccuVoice® Speaker uses hearing aid technology to make TV dialogue crystal clear. Can’t hear dialogue on TV? You’re not alone. Today’s TVs have tiny speakers with weak sound. Our new AccuVoice® Speaker uses advanced computer algorithms to lift voices out of background sounds. Dialogue is incredibly clear, even at low volumes. Only 17" wide, it fits anywhere. Hookup is simple – one connecting cord. Room-filling home theater sound, with the clearest voices we’ve heard on any speaker, at any price. Read our amazing consumer reviews on amazon.com. “Great for folks who have trouble hearing the TV.” CNET The Un-Sneaker™ goes to work. You deserve insane comfort 24/7. So why not treat your feet to the Hubbard 24 Seven? Great Sound. Made Simple. 800-946-2152 30-Day Home Trial | Free Shipping | zvox.com | amazon.com ® ZVOX & AccuVoice are registered trademarks of ZVOX Audio. ORDER AT AMAZON.COM OR ZVOX.COM Free shipping and returns. Order online or call 844.482.4800. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | A17 GETTY IMAGES (2) LIFE & ARTS ON “IF ALL I WAS WAS BLACK” (Anti), Mavis Staples sings of social injustice and racial discord, her voice warm and loving, her phrasing at times clipped with suppressed anger. Exploring anew subject matter she’s addressed throughout a career that began almost 70 years ago with the Staple Singers, here Ms. Staples testifies that she still believes that love and dialogue are the way forward. She refuses to point to flaws in her opponents without recognizing the flaws in herself. But she also acknowledges a change in American culture: Having long ago visited with the mother of Emmett Till—the 14-year-old who in 1955 was brutalized and lynched in Mississippi following an accusation that he had flirted with a white woman—and sung often in support of Martin Luther King Jr., she sees that progress toward a more perfect union is now thwarted and that vile, anti-American forces that seemed vanquished have returned. “If All I Was Was Black,” which arrives on Friday, is her third collaboration with Wilco’s Jeff Tweedy, who wrote and produced the album. Musically, it is of a piece with her run of five earlier 21st-century studio recordings that constitute a very satisfying late period. It links to the Staple Singers’ easygoing blend of pop, gospel and light funk while tossing in a pair of folk blues; and most tracks would slide in without quarrel on a mixtape with the Staples Singers’ “If You’re Ready (Come Go With Me),” “I’ll Take You There,” MUSIC REVIEW | By Jim Fusilli Troubled Times Call For Love and Dialogue Mavis Staples sings of social injustice and racial discord on her new album “Respect Yourself” one / To look at it and other hits. from your point of Much as it is view.” She conhere, the quest for cedes her wrath in racial equality was “We Go High.” “I a lyrical theme for have a mind to some of her other bury them whole,” contemporary reshe sings. cordings, in particBut, as she so ular the gritty often has, Ms. Sta“We’ll Never Turn ples rises above Back,” the 2007 alhate and the hatebum in which she ful. Certain that and Ry Cooder reGod and justice visited the civilare on her side, rights movement. she offers soluHer early 2016 tions that require disc, “Livin’ on a patience, commitMavis Staples, top and above, with Jeff Tweedy, who wrote and High Note,” proment and a willproduced the singer’s new disc, ‘If All I Was Was Black’ duced by M. Ward, ingness to accept concluded with a disproportionate “MLK Song,” folk blues in which Staples and Mr. Tweedy cite curamount of responsibility for strife. Ms. Staples sang excerpts from a rent events in the new songs. “People are dyin’ / Bullets are 1968 King sermon. For the most “Poor kid, they caught him withflyin’ / No time for tears / We’ve part, though, Ms. Staples offered out his license / That ain’t why got work to do” is how she puts it songs of faith, both traditional and they shot him,” she sings in “Little in “No Time for Crying.” “Little bit recently composed, many informed Bit.” In “Build a Bridge,” she from you and a little bit from me,” with an optimism that now seems states: “When I say my life matters she sings in “Little Bit,” adding, misplaced. / You can say yours does too / But “Simple as it gets / We set each Without naming names, Ms. I bet you never had to remind anyother free.” If those sentiments Weather Vancouver 10s 0s Calgary 40s ttl Seattle l Helena 30s Billings Eugene Boise 20s 30s Ottawa Bismarckk 20s T t Toronto pls //St. Pau Pa Mpls./St. Paul 30s Montreal A g t Augusta 40s t Boston rtford Hartford New ew York Y k 60s 40s 50s 50s 50s 10s Winnipeg 30s Portland P d <0 20s 20s 40s k Milwaukee Detroit t l Buffalo 70s Cl l d Cleve Cleveland Ch g Chic Chicago Reno es Des Moines 60s Cheyenne Omaha Ph hil d lphi h Philadelphia 80s h Pittsburgh g 50s Salt alt Lake City Indianapolis Sacramento p i gfi ld Springfield Denver 60s 90s hington hi gton D.C. DC Washington San an Francisco Kansas Top k Topeka C d Colorado Ch l t Ch Charleston City 100+ h d Richmond 40s Las L p Springs Louisville Lou ill . L Lou St. Louis h Wichita Ve Vegas 70s l igh h Raleigh Nashville h ill Angel Los A Angeles Charlotte C h l tt Albb q q Albuquerque F Santaa Fe Memphis phi C b Columbia Ph Oklahoma kl homa ma City 80s Phoenix Warm Rain 70s San Diego Atlanta Atl t Little Rock 70s Tuc Tucson i h Birmingham 60s Dallas ll J k Jackson Ft. Worth D Cold T-storms El P Paso Jacksonville bil Mobile A ti Austin 80s 70s Stationary Snow Houston t 0s l d Orlando New ew Orleans Tampa San an Antonio A 80s P Pierre 10s 20s 30s Anchorage A h g 40s Honolulu l l 70s U.S. Forecasts Miami Showers Flurries Ice City Omaha Orlando Philadelphia Phoenix Pittsburgh Portland, Maine Portland, Ore. Sacramento St. Louis Salt Lake City San Francisco Santa Fe Seattle Sioux Falls Wash., D.C. Today Hi Lo W 60 39 sh 78 62 pc 51 36 pc 87 59 pc 45 28 pc 43 27 c 53 45 sh 65 45 pc 54 48 pc 56 36 pc 64 51 pc 67 35 s 51 44 r 57 35 sh 53 36 pc Tomorrow Hi Lo W 56 28 pc 78 59 pc 53 43 pc 85 60 pc 51 37 c 43 33 pc 50 43 r 57 51 r 59 32 r 61 51 pc 62 55 r 62 33 s 49 42 r 45 22 pc 54 42 pc International City Amsterdam Athens Baghdad Bangkok Beijing Berlin Brussels Buenos Aires Dubai Dublin Edinburgh Hi 52 68 80 90 47 43 47 90 90 53 51 Today Lo W 47 r 60 t 55 pc 77 pc 22 s 40 c 45 r 69 s 71 s 45 c 38 c Tomorrow Hi Lo W 55 46 c 69 60 t 81 57 s 90 78 pc 47 23 s 48 39 c 51 43 c 85 51 t 88 70 s 53 45 c 50 45 c City Frankfurt Geneva Havana Hong Kong Istanbul Jakarta Jerusalem Johannesburg London Madrid Manila Melbourne Mexico City Milan Moscow Mumbai Paris Rio de Janeiro Riyadh Rome San Juan Seoul Shanghai Singapore Sydney Taipei Tokyo Toronto Vancouver Warsaw Zurich Today Hi Lo W 44 34 pc 44 28 s 83 69 pc 80 72 pc 66 55 s 91 76 t 72 51 pc 83 61 t 52 47 c 61 33 s 90 77 pc 90 70 s 71 46 pc 52 32 pc 41 29 r 91 75 pc 50 39 s 81 66 s 85 56 pc 60 48 t 88 77 sh 52 34 s 64 53 c 85 74 t 73 61 s 77 70 r 63 51 c 42 30 pc 49 44 r 41 34 pc 42 25 pc 2 Tomorrow Hi Lo W 45 33 pc 45 29 pc 80 66 pc 80 73 pc 68 55 s 91 76 t 71 50 s 75 45 t 55 45 c 60 36 s 90 77 pc 87 62 sh 74 46 pc 52 33 pc 35 33 c 90 76 pc 52 37 pc 85 71 s 87 57 s 63 47 c 88 77 sh 45 28 s 62 54 pc 87 75 t 75 63 s 77 70 pc 60 50 c 44 38 c 48 38 sh 44 35 c 42 26 pc 3 4 5 14 6 7 8 10 24 26 28 33 37 34 38 43 47 50 54 55 60 44 48 51 30 31 36 57 62 58 59 63 64 65 66 67 68 69 HERE’S TO YOU! | By Zhouqin Burnikel Across 1 Carrying current 5 Symbol on a Scrabble board’s center space 28 Beethoven’s Symphony No. 3 32 Sizable serpent 33 Small change 4 Taxpayer who’s gone paperless 34 Cocktail with a black currant flavor 5 NBC weekend fixture 8 Postgame summary 52 61 30 Brewer with a “Banquet Beer” 7 Maria’s pal in “West Side Story” 45 49 56 3 Luther Stickell’s portrayer in the “Mission: Impossible” movies 6 ___ Maria 40 42 46 29 35 39 41 13 22 25 27 32 12 19 21 23 11 16 18 20 53 9 15 17 53 Antibullying ad, in brief 56 Some pop groups 9 More suggestive 51 Like bubble baths 13 Song for the masses 18 60 Here’s the deal 37 Collection for the poor 64 Complete reversal 25 15 Golfer’s front or back 39 Org. with many secrets 65 Home inspection issue 26 16 Impressive display 40 Shoelace problem 66 Fall guy? 29 17 Here’s the scoop 41 Microwave sound 21 Ride for hire 22 TV journalist Curry 45 Mine extraction 46 Criticize strongly 23 Here’s the catch 48 Passes, as a law 27 Screeching bird 50 Here’s the pitch 69 Sort Down 1 Hot flow 2 “No man ___ island” Solve this puzzle online and discuss it at WSJ.com/Puzzles. 44 Dealer in souls 12 He played Pacino’s brother in “The Godfather” 14 “Like that’ll ever happen!” 42 Vessels from hearts 43 Two-time Best Director Lee 49 Fed a neighbor’s feline, say 19 68 Attachment for draft horses 42 For all to hear 11 Parallelogram calculation 24 20 It might be obtuse 35 Finished off 38 Prepare for a fight 47 Nutrient in seaweed 57 Starting squad 67 Fracking target 31 Cost for cards 32 Rich sponge cake 10 Get it wrong 36 “Let’s get going!” 9 Arrive at s s...sunny; pc... partly cloudy; c...cloudy; sh...showers; t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Today Tomorrow City Hi Lo W Hi Lo W Anchorage 26 12 s 23 19 s Atlanta 61 41 s 61 45 s Austin 76 61 pc 77 63 c Baltimore 52 32 pc 54 40 pc Boise 50 36 pc 52 42 c Boston 43 34 sh 45 40 pc Burlington 39 27 c 44 37 c Charlotte 58 36 s 58 39 pc Chicago 48 44 c 52 31 r Cleveland 48 34 pc 48 39 r Dallas 77 64 pc 74 60 c Denver 66 28 pc 58 35 pc Detroit 46 36 pc 45 35 r Honolulu 86 73 sh 84 72 pc Houston 79 59 pc 81 63 pc Indianapolis 48 37 pc 49 31 r Kansas City 57 48 sh 58 31 pc Las Vegas 73 52 pc 76 59 s Little Rock 62 49 pc 66 50 sh Los Angeles 76 59 pc 74 59 pc Miami 84 72 pc 82 70 pc Milwaukee 48 42 c 51 32 r Minneapolis 48 32 sh 38 24 pc Nashville 59 40 pc 62 48 sh New Orleans 71 54 s 74 56 pc New York City 48 38 pc 49 43 pc Oklahoma City 67 55 sh 64 45 c 80s 80s 1 50s A bany Albany oux FFalls Sioux Mr. Fusilli is the Journal’s rock and pop music critic. The WSJ Daily Crossword | Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. d Edmonton seem too pat and idealistic—and minus Ms. Staples’s delivery, some read as such—she makes clear that she’s also a realist who won’t be told to pipe down. In “Who Told You That,” she’s advised “My, my don’t explode / We don’t want to rock the boat,” but she immediately challenges that soft counsel: “Who told you that? / They lie and they show no shame.” Mr. Tweedy surrounds Ms. Staples with a sympathetic band including his son Spencer and Stephen Hodges on drums; Scott Ligon on various keyboards; and guitarist Rick Holmstrom and bassist Jeff Turmes, who, like Mr. Hodges, have been members of Ms. Staples’s live band. A battery of backup singers gives the music a gospel lift. As a songwriter, Mr. Tweedy interprets her longstanding positions. She believes in the essential goodness of those who see and savor the shared humanity and she won’t obsess over those who don’t. She offers her hand to those who may view it with increasing and inexplicable suspicion and disdain. If those who live to loathe reject it, so be it: “Oh I won’t be afraid / If that’s how you want to stay / I’ve got love,” she sings in the title track. A subtly provocative commentary on the country’s troubling, unrestful state, “If All I Was Was Black” is yet another high mark in the long and eventful career of Ms. Staples, who has seen much and knows what it means. 27 52 Schoolyard comeback 53 “Besides that...” 54 Enemy of the Jedi Did an usher’s job 55 Greenish-blue Kick out hue Try a run 58 “Take ___!” (track Candy wafer coach’s directive) brand 59 Viral video, e.g. It beats scissors 61 Digital address Boot bottoms 62 Sort “Give me a few more minutes!” 63 Lyrical tribute Previous Puzzle’s Solution C A N S A L O E P I S A S T E W P S O D A T H I N P A S S A R T T A I L L E G E L A A R E S W I R E K E Y S S I M B A K N E A D G U A R D S O L F L O K E R O S W I N G E P E A G R OWN S O N S C O A T S A F E L A T O O N F L A P D F I L E R S P A D E S T AW L I E A N NM E D I N S G C I MA N OM E T E T R I O O D O L N E A R A T T Y R O G E T O N S E E R S A L D A L E S T For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A18 | Tuesday, November 14, 2017 SPORTS COLLEGE BASKETBALL | By Jason Gay Duke men’s basketball coach Mike Krzyzewski holds the game ball following his 1,000th win at the school. Dungy managed to have a lengthy, thoughtful conversation about the athlete protests in the NFL without anyone throwing a Papa John’s pizza. It felt like a minor miracle. Look: Duke men’s basketball has brought me great misery, and I wanted to hate “Basketball & Beyond with Coach K.” But it’s good. Krzyzewski used to do the typical sports radio coach’s show, back when he began in Durham. He did not love it. “I’d go to a studio someplace, and Sam from Apex would call, and Jim from Raleigh,” Krzyzewski tells me in his office after a show taping. “I’m saying, ‘Yeah, I should be home talking to my family, not these guys.’” But Krzyzewski enjoys “Basketball & Beyond,” “because it’s not a call-in, and I get a chance to really visit with top-notch people. I learn a lot, even in the preparation of it.” He says he likes the show so much, he’d want to expand it when he steps away from the bench. Don’t panic, Dukies: K does not sound in a rush. Krzyzewski may have an office stuffed with memorabilia—in the hallway is a basketball from Duke’s 2015 title over my Wisconsin Badgers that I wanted to steal and punt out a window—but he’s thoroughly in the present, with another stacked team expected to make noise in late March. THE COUNT Italian players react after being knocked out of World Cup contention by Sweden. DANIEL DAL ZENNARO/EPA/SHUTTERSTOCK A RUN OF BAD PUCK SOCCER ITALY WHIFFS ON WORLD CUP BY JOSHUA ROBINSON OVER THE PAST 60 years, nearly everything about the World Cup has been tinkered with, from the number of teams to the design of the trophy. But when the 2018 edition kicks off in Russia next summer, the tournament will try something it hasn’t experienced since 1958: a World Cup without Italy. The Azzuri, four-time world champions, failed to qualify on Monday after losing a home-andhome playoff against Sweden, marking a level of sporting disgrace that younger generations had not considered possible. Worse than slow Ferraris or Olympics without medals, an incompetent national soccer team is as low as it gets for this soccer-mad nation. “We blew something that could have been significant, even socially,” goalkeeper Gianluigi Buffon said while weeping through his post-game interview. “The blame is shared among all of us.” Italy will be the only previous Like a lot of his colleagues, Krzyzewski has adapted to college basketball’s fleeting “one-and-done” landscape, in which top players stay only a season before departing for the NBA. He’s been good at it—this season, Duke has star frosh Marvin Bagley III, who should be a top NBA pick this spring, and next season, they will bring the touted Canadian prospect R.J. Barrett to campus. This isn’t to say Coach K likes “one-and-done”—he doesn’t. And amid the FBI bribery case involving college teams, sketchy agents and intermediaries — a development that led to the NCAA’s Commission on College Basketball— Krzyzewski wants to put the entire system up for reconsideration. “The whole journey has to change,” Krzyzewski says. I thought Coach K might be oldfashioned about change. But he sounds open to everything: not just eliminating one-and-done, but strategizing different compensation ideas for players, and growing the NBA’s role, perhaps through the G League or an academy-style track similar to what it does overseas. The only thing he’s dead opposed to is a hard rule on how much time a player spends in college. “Once we get a player, he becomes a part of Duke,” he says. “We have a responsibility to educate him, to coach him and all that, but he has the right to determine whether he comes here or not, and then how long he stays here.” On the issue of compensation, I tell him that any time I write about paying college athletes, I hear from folks who feel a scholarship is a more-than-fair deal. “Well,” Krzyzewski says, “not to say that one is more important than the other, but there are different levels of college athletes.” He continues: “And college teams. The sport of football, the sport of men’s basketball, the revenue producing element, especially at the Power Five conference level—it’s apples and oranges. It isn’t all apples. Do we have a system that can figure that out?” It’s not simple. There are legit concerns about what paying athletes would mean for athletes in non-revenue sports—or if it’s legally possible with Title IX rules. Could revenue sports like football and men’s basketball be legally reclassified as something different? “That’s a possibility,” Krzyzewski says. “I’m a proponent for change. It’s not working. I don’t have the solution. I would hope that this [commission] comes up with some courses of action.” The focus should be the people on the court, he says. “The game is the kid,” Coach K says. “The game is the player.” And with that, the winningest men’s college basketball coach has to wrap. Basketball games were coming, and a season’s worth of radio shows, too. It’s time to get back to work…and listening. winner of the World Cup not to be in Russia. It now joins the ignominious club of major soccer nations to fall apart in qualifying this year, alongside Chile and the Netherlands. And then there is the U.S., which failed to emerge from one of the easier qualifying zones when it choked last month against lowly Trinidad and Tobago. Italy’s defeat also marked a devastating end to one of the great careers in the international game. Buffon, Italy’s captain, keeper, and national anthem singer-in-chief was always going to retire at the end of this World Cup campaign. He just didn’t expect the conclusion to come without a flight to Russia. But at 39, after 175 international matches in 20 years, he called it quits. “I don’t feel sorry for myself,” he said. “I feel sorry for the entire project.” That said, the Italian project hasn’t exactly been a major factor in international soccer since the Azzurri last lifted the World Cup in 2006. At both the 2010 and 2014 tournaments, they were knocked out in the group stage. This time around, Italy put itself in this predicament because it finished behind Spain in its original qualifying group. That meant it had to take the playoff route, where it started as a heavy favorite against the Swedes, who hadn’t been to the World Cup since 2006. But the damage was done in the first leg in Stockholm when Sweden snuck in one severely deflected goal. On Monday night in Milan, Sweden knew it simply had to defend its advantage. Bending but never breaking, it allowed Italy to have 75% possession and 23 attempts on goal, though only six of Italy’s shots hit the target. Sweden’s physical approach and compact defending kept the Azzurri off balance as time ran out. And as Italy panicked, its game went to pieces. “Anyone who has played knows how difficult it is to play in games like this one,” Buffon said. “We didn’t manage to express ourselves. We lacked the clear heads to score.” Nearly six weeks into the NHL season, the Arizona Coyotes are remarkably still looking for their first win in regulation. At just 2-14-3, Arizona is on pace for just 30 points over a full 82-game schedule, which would represent the sport’s worst record in a generation. It took 12 games for the team to get a win of any sort, on a goal with just 15 seconds left in overtime against the Philadelphia Flyers. Their second victory came five nights later in a shootout over the Carolina Hurricanes. Things aren’t going to get easier for the Coyotes, as 10 of their next 14 contests are on the road. And the four home games their fans will “enjoy” during that stretch are against the top three teams in the Pacific division (Los Angeles Kings, Las Vegas Golden Knights and San Jose Sharks) and the Metropolitan division-leading New Jersey Devils. Inexperience has played a role in the Coyotes’ dismal start. The average age on their roster is just 26.0, making them the second-youngest team in the NHL behind the Columbus Blue Jackets. The lone bright spot for the Coyotes has been the play of 19year old forward, Clayton Keller. A 2016 first-round pick out of Boston University, Keller has lit the lamp 11 times in 19 games. No one else on Arizona has as many as five goals. That lack of offensive firepower has been extremely difficult to overcome for a team whose goalies are dead last in the league with a .881 save percentage, which is the lowest mark in the league since 1999-2000. In a sport where over half the teams make the postseason, it appears Arizona will miss the playoffs for the sixth consecutive season—and 12th time in 15 years. In 38 seasons split between Winnipeg and Phoenix, the franchise has only one division title. —Eric Eisenberg Arizona Coyotes goalie Antti Raanta. Frozen on Ice Lowest percentage of possible points by non-expansion teams: TEAM SEASON POINTS PTS. % San Jose Sharks New York Rangers Arizona Coyotes* Chicago Blackhawks Quebec Nordiques Washington Capitals Winnipeg Jets** 1992-93 1943-44 2017-18 1927-28 1990-91 1976-77 1981-82 24 17 30 17 31 32 32 .143 .170 .184 .193 .194 .200 .200 * 82-game pace **Arizona Coyotes franchise Source: Hockey Reference; WSJ NORM HALL/NHLI/GETTY IMAGES Durham, N.C. At this point, why should Coach K listen to anybody? Still, here we are, on a recent morning, amid a tangle of cords and headsets, in a room not far from that rowdy mousetrap, Cameron Indoor Stadium. Mike Krzyzewski—the winningest coach in men’s college basketball history, the holder of five national titles—is sitting at a conference table, dressed in a spiffy Blue Devils pullover, quietly…listening. To A.J. Hinch, manager of the newly-crowned World Series champion Houston Astros, who talks about being the “calmest heartbeat” in the clubhouse. To Alex Rodriguez, currently transforming from baseball pariah to beloved TV personality, who talks about trying to convert Jennifer Lopez to a Miami Hurricanes fan. “You are so damn interesting to talk to,” Coach K coos at one point to A-Rod. This is “Basketball & Beyond with Coach K,” Krzyzewski’s national radio show, now in its 13th season on SiriusXM’s ESPNU station. The Duke coach, now 70, maintains his high-profile day job—the Blue Devils began the 2017-18 season ranked No. 1 in the country, and face No. 2 Michigan State Tuesday in Chicago—but he somehow finds time to host a weekly interview show where the guests have ranged from LeBron James to Richard Petty to former Chairman of the Joint Chiefs of Staff General Martin Dempsey. Coach K has had Bill Belichick on twice. Twice! And Football’s Favorite Grumpy Lobster Boat Captain was downright gabby. “I can’t believe how much he talked,” Krzyzewski says. “Basketball and Beyond” is not typical sports radio schlock. Coach K does not do the hot take—as a host, he’s low-fi curious, like NPR’s Terry Gross, or his friend and Duke grad, Charlie Rose. He pulls questions from pages of notes. There are no gotcha moments, though he does bring up A-Rod’s steroids past, allowing him to address it and tactfully pivot away. A couple of weeks back, Krzyzewski and former NFL coach Tony GERRY BROOME/ASSOCIATED PRESS Coach K Is Still Listening For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | A19 OPINION The ABA Jumps the Shark Looks as if the American Bar Association picked the wrong judicial nominee to play politics MAIN with. If ReSTREET publicans on By William the Senate JuMcGurn diciary Committee are smart, they will use the ABA’s appearance at a hearing Wednesday to call the group out. The object of the ABA’s attention is Leonard Steven Grasz, a former Nebraska chief deputy attorney general who’s been nominated for the a seat on the Eighth U.S. Circuit Court of Appeals. The ABA has slapped Mr. Grasz with a “not qualified” rating, saying he’s too biased and too rude to be a judge. Given that much of this rating is based on accusations that are not detailed and from accusers who remain anonymous, it reveals more about the organization that issued it than it does about Mr. Grasz. “The ABA is running a smear campaign based on the idea that Steve is a kale-hating, puppy-kicking monster,” says a fellow Nebraskan, Republican Sen. Ben Sasse. “But no one in Nebraska on either side of the aisle recognizes that man.” The ABA says its ratings are based on neutral and professional criteria, much the way a medical board might evaluate a doctor. Since President Eisenhower “first invited the ABA into the process,” the group says, it’s been standard practice for presidents to submit their judicial candidates to the ABA for vetting before announcing a nomination. Well, yes and no. In just one indication of how politicized the ABA ratings have become, Democrats and Republicans long ago diverged on the ABA’s role in the nominations process. In 2001, George W. Bush halted the practice of giving the ABA first crack at vetting potential nominees; in 2009 Barack Obama revived it; and this year President Trump halted it again. Yet even without an official role, the ABA ratings still exert undue influence on nominations. For the real signal sent by a “not qualified” rating is: This guy is a Neanderthal. That in turn allows the press to portray a nominee as out of the mainstream, and it can siphon off confirmation votes from Republican senators nervous about the rating. That’s plainly what the ABA hopes for Mr. Grasz. The ABA’s statement makes clear his “not qualified” rating is based on two broad worries: his “passionately held social agenda” and complaints that he’s been “gratuitously rude.” By “passionately held social agenda,” the ABA means abortion; in his prior life Mr. Grasz defended—as a state deputy attorney general is obliged to do—a Nebraska ban on partial-birth abortion. What it means by “rude” no one knows, because the ABA has thrown this out there while providing almost no specifics. For good measure, the ABA has twisted a twodecade-old law review article to suggest Mr. Grasz rejects a point he explicitly states, to wit, that judges are bound by clear legal precedent—even when “it may seem unwise or even morally repugnant.” Why did the group ask where a judicial nominee’s children went to school? So Wednesday’s hearings offer Republicans an excellent opening to press ABA officials on how they came to their “not qualified” rating. Here’s a few suggestions: • Why did the ABA ask where Mr. Grasz’s children went to school? Does the ABA believe their Lutheran education affects his fitness as a judge? • Is it ever appropriate for an ABA interviewer to refer to “you people,” as Mr. Grasz’s did? When Mr. Grasz asked for clarification, the interviewer said he meant “Republicans and conservatives.” Has the ABA ever referred to “you people” when interviewing a Democratic nominee? • The ABA has taken positions on many of the most contentious issues before the courts these days, from abortion to guns to same-sex marriage. How can a Republican judicial nominee have confidence these ABA positions will not adversely affect the ABA’s rating? The questions are particularly compelling given that the Mr. Grasz who testified at his confirmation hearing earlier this month bears no resemblance to the knuckledragger the ABA is making him out to be. So it’s crucial Republicans keep the focus on the ABA and not let the hearing become yet another stage for anonymous accusations against Mr. Grasz—especially because he won’t be there to defend himself. The best revenge, of course, is getting this man confirmed notwithstanding his ABA rating. But the day after the attacks on Mr. Grasz at his hearing, Mr. Sasse delivered an impassioned speech on the Senate floor, raising an even larger question: Since when did the Senate accept the idea that its members should outsource to a third party their constitutional responsibility to evaluate the fitness of the president’s nominees to the federal bench? “There’s nothing wrong with a liberal organization such as the ABA using its First Amendment rights to push its political agenda,” says Mr. Sasse. “What’s wrong is to allow it to masquerade as fair and impartial arbiter—and give it a special role in the process.” Write to firstname.lastname@example.org. Donald Trump’s High-Wire Foreign Policy By Walter Russell Mead P resident Trump inherited a world in crisis, with the Pax Americana challenged in Asia, the Middle East, Europe and the Caribbean. Today the White House has clear priorities—but questions about temperament and competence persist. Think back 10 months to Inauguration Day. North Korea was regularly testing and improving its missiles and nuclear weapons, well on its way to threatening the American mainland. China was intensifying its multifaceted challenge to the Asian status quo. Iran’s expansionism threatened to plunge the Middle East into chaos, and the regime had outmaneuvered an Obama administration that was desperate for a nuclear deal. Russia’s annexation of Crimea and support for breakaway forces in eastern Ukraine presented legal and geopolitical challenges to the post-Cold War order. Venezuela’s progressive degradation threatened to destabilize Latin America, a region of direct interest to the U.S. Remember, too, President Trump’s skepticism of global engagement. He came into office convinced that American interests were being undermined by the multilateral trading system, as established by the George H.W. Bush and Bill Clinton administrations. He disdained the process enshrined in the 2016 Paris climate accord. If all this weren’t enough, the incoming team knew that the American public was increasingly skeptical of large overseas commitments— whether to diplomacy, foreign aid or war. And the journalistic and foreign-policy establishments viscerally opposed Mr. Trump on personal and political grounds. It’s more conventional than expected, at a time when the world is more perilous. Talleyrand, Metternich, Bismarck and Kissinger, working together, would have had a difficult time managing a portfolio this large, urgent and unwieldy. The Trump administration has struggled visibly to develop a coherent approach. Yet as the president’s first year nears its conclusion, some order has begun to emerge, and at least the outlines of a Trump global policy now seem clear. The first task was to set priorities, and it is obvious that the White House is putting Asia and the Middle East above other regions and issues. The crises in Ukraine and Venezuela are on the back burner. So are climate and trade policy, though the president’s tweets sometimes disguise this reality. When addressing its priorities, the Trump administration has chosen an activist approach, tightening relations with traditional allies to restore regional orders under threat. This means checking Iran by working closely with the untested new Saudi leadership, as well as Egypt, the United Arab Emirates and Israel. This anti-Iran phase is beginning in earnest now that the Trump administration’s original goal of destroying Islamic State’s so-called caliphate has been largely achieved. The White House also hopes the new constellation of forces will allow progress on another goal: containing and maybe even resolving the Israeli-Palestinian dispute. In Asia the administration, working closely with Japan, is trying to assemble and strengthen a coalition to counterbalance China—while simultaneously seeking Chinese cooperation in tightening the screws on North Korea. The White House hopes that offering Beijing a smooth trade and political relationship will induce it to provide real help with the North Korea problem, even as the U.S. works to persuade the North Koreans that the risks of conflict are real. Mr. Trump’s foreign policy has so far turned out to be more conventional than his rhetoric and style would suggest. Working with America’s traditional allies in Asia and the Middle East against those regions’ revisionist powers hardly amounts to a strategic revolution. But if Mr. Trump’s current goals are conventional, the state of the world is not. He may well fail. The challenges are large, the learning curve is steep, and the terrain is unforgiving. Allies and adversaries are watching the Republican Party’s disarray on issues like health care, assessing the prospects of a Democratic wave in 2018, and paying close attention to the progress of the Mueller investigation. Mr. Trump’s foreign policy, like his presidency overall, is a gamble whose outcome the president cannot fully control. For now Mr. Trump is performing a high-wire act, juggling his way across the IndoPak region even as his administration pursues ambitious goals in the Middle East. Some of the world’s most powerful countries hope that he fails, and they will do what they can to trip him up. Americans, regardless of party or their personal sentiments about Mr. Trump, should wish him success overseas. The consequences of failure could be extreme. Mr. Mead is a fellow at the Hudson Institute and a professor of foreign affairs at Bard College. A Hedge Fund That Has a University By Thomas Gilbert And Christopher Hrdlicka W hatever you may hear, the Republican tax-reform proposal isn’t an assault on higher education. The House and Senate plans include a new 1.4% excise tax on the net investment income of university endowments, but the levy applies only to private colleges with at least 500 students and endowments of more than $250,000 a student. Schools like Harvard, Yale, Stanford and Princeton—which together hold over $100 billion—are predicting doom. Yet this long-overdue tax will benefit higher education in the end. Over the past 30 years universities have chased higher returns on their endowments, leading them to take greater risks. Our research shows that more than 75% of the assets in university endowments are now in risky investments: securities, hedge funds and private equity. Think of Harvard as a tax-free hedge fund that happens to have a university. The proposed levy on investment income—dividends, interest and capital gains—is fundamentally a tax on this risk-taking, not on the endowments themselves. By taxing risk-driven income, the GOP plan doesn’t target higher education. It goes after hedge funds masquerading as university endowments. Taxing endowments’ investment income would help higher ed. When an endowment is invested in safe assets such as bonds, it serves as a rainy-day fund to buffer the risks a university takes in its normal operations: admitting students on scholarship, launching new research laboratories and generally expanding its educational and research missions. Such a safe endowment generates almost no investment income, meaning there would be no tax liability under the GOP proposal. Instead the tax would fall on large, risky and illiquid funds. Endowments that make such investment decisions cannot effectively protect their schools. During the financial crisis, Harvard’s endowment lost nearly 30% of its value. After failing to sell its privateequity portfolio, the university had to institute drastic hiring and budget freezes. A large and risky endowment also reveals a university’s poor assessment of its internal investment opportunities, such as scholarships and research. If Harvard and Stanford have educational and research projects that could benefit from additional funds, why put their money at risk in the stock market? Perhaps the answer is that the opportunity to run a tax-free hedge fund is too attractive. In that case, why should taxpayers subsidize their activities? In colleges’ defense, states have placed perverse restrictions on their ability to use endowments as rainy-day funds. The Uniform Prudent Management of Institutional Funds Act is a law in 49 states that limits the maximum endowment payout rate between 5% and 7% a year. Although well-intentioned, that and earlier restrictions prevent universities from tapping endowments to fill the kind of budget holes they experienced in 2008. To have the best chance of improving incentives for endowments, the proposed investment tax should be accompanied by a repeal of these payout caps. But it’s a mistake to think that taxing risky investments by university endowments is an attack on academia. Discouraging superwealthy schools from pumping cash into stocks, hedge funds and private equity should lead to increased spending on education and research. Isn’t that the purpose of higher education? Messrs. Gilbert and Hrdlicka are assistant professors of finance at the University of Washington. BOOKSHELF | By Caitlin Fitz Freedom On the March The Expanding Blaze By Jonathan Israel (Princeton, 755 pages, $39.95) W e in the United States have long liked to see our nation as an inspiration for liberty-lovers worldwide. Thomas Paine called the would-be republic “an asylum for mankind.” Ralph Waldo Emerson memorialized “the shot heard round the world.” It was up to us, Abraham Lincoln vowed, to prove “that government of the people, by the people, for the people shall not perish from the earth.” In “The Expanding Blaze,” Jonathan Israel, professor emeritus at the Institute for Advanced Study in Princeton, urges us to take these lofty visions seriously. From 1775 through 1848, he argues, the American Revolution inspired freedomfighters around the world, from Canada and Colombia to Ireland and Italy. Consider the National Assembly of revolutionary France, which convened under the stony gaze of three busts: George Washington, Benjamin Franklin and JeanJacques Rousseau. Yet the American Revolution had a contested legacy, Mr. Israel argues, for it encompassed two “irreconcilable” ideologies. On one side were radical “democratic republicans” like Thomas Jefferson and Paine, who championed sweeping political, social and secularizing change. On the other side were “aristocratic republicans” like John Adams, who advocated more incremental reform, sought “anti-democratic” restrictions on voting and admired Britain’s “mixed government.” Mr. Israel argues that this divide marked “all” of the revolutions that ensued in Latin America and Europe over the next several decades. The stakes were high. Would revolutionaries champion a new world era of “universal rights”? Or would they settle for what Jefferson called the “half-way house” of England’s constitutional monarchism? To readers of Mr. Israel’s previous books, the argument will sound familiar. A scholar of European intellectual history, Mr. Israel has long maintained that the Enlightenment of the 17th and 18th centuries encompassed similarly radical and moderate wings. Scholars have praised Mr. Israel’s interpretation for its breathtaking scope, but they have criticized it for weak evidence, proradical bias and overstated dichotomies that miss the messiness of real life and the exigencies of politics. The same strengths and weaknesses mark “The Expanding Blaze.” A relative newcomer to U.S. history, Mr. Israel sometimes brings a refreshing outsider’s perspective, as when he shows how the American Revolution galvanized Irish resistance to British rule, or in his account of the exodus of radicals from Germany to the United States after Europe’s failed 1848 revolutions. Though the author concentrates on tiny circles of intellectuals in each country, he shows how the radicals among them strategically invoked the American example as evidence that change was possible, and he powerfully captures their sense of global urgency. In the wake of American independence, ensuing revolutions worldwide likewise saw a divide between ‘democratic’ and ‘aristocratic’ ideals. The other part of Mr. Israel’s argument—that a comprehensive divide between “democratic” radicals and “aristocratic” moderates framed debates from the U.S. to Latin America to Europe—is less persuasive. The author simply throws up the revolutionary barricades and pushes everyone to one side or the other, even when they resist such easy categorization. Take Jefferson, for instance, whom Mr. Israel calls an “iconic” radical, the “most consistent” and “unambiguous” among the Founders. Mr. Israel correctly notes that Jefferson’s antislavery urgency was waning by the early 1800s, but he glosses over the ways in which slavery had long shaped Jefferson’s politics. Like many of his global contemporaries, Jefferson was radical and retrograde, all in one. Mr. Israel’s outsider view of U.S. history sometimes leads him astray. He calls the antebellum painter and inventor Samuel Morse a “stalwart champion of democratizing revolutionary values,” perhaps unaware that Morse helped lead the anti-Catholic nativist movement—which Mr. Israel elsewhere describes as undemocratic and “conservative.” (Here too, the author’s dichotomies seem forced.) Other statements are simply ill-considered: Slavery, Mr. Israel asserts, “was universally recognized as the prime . . . defect” of the United States. But what about the plight of native people, who might as easily have pointed to territorial aggression? Jefferson, Mr. Israel remarks, supported enfranchising “all” free people. But what about free women? Like most of his contemporaries, Jefferson never intended to see women casting ballots; the putative radical hoped women were “too wise to wrinkle their foreheads with politics.” Such repeated missteps by Mr. Israel are distracting at best. At worst, they undermine the reader’s trust in the author’s accuracy and understanding. Ironically, although he sympathizes with radicals who fought for “universal human rights,” Mr. Israel has a limited idea about whose ideas matter: Black intellectuals and women are nearly absent from this book. Mr. Israel suggests that black Haitians struggled to understand the big ideas at stake, for example, even though recent historians have argued that Haitian revolutionaries urged global radicals toward a broader understanding of human freedom. Similarly, he asserts that in the American Revolution most black people’s “general understanding of the slavery issue” remained “stunted by lack of education” and “dogged adherence to . . . piety.” But historians have shown the reverse: African Americans repeatedly and judiciously convinced sympathetic whites to act, and their religiosity strengthened their egalitarianism. Having discounted African American voices, Mr. Israel devotes little attention to global 19th-century abolitionists, arguably the leading human-rights radicals of their time. The problem with “The Expanding Blaze” is not that Mr. Israel has written about a small group of intellectuals. Men like Jefferson, Locke and Montesquieu were enormously influential, and they merit disproportionate attention. But Mr. Israel too often views such men in isolation, without exploring how their ideas developed in conversation with the claims of other social and political groups. Ideas don’t bleed, and so Mr. Israel’s account is often bloodless, an unrevolutionary treatment of a revolutionary age. Ms. Fitz, a historian at Northwestern University, is the author of “Our Sister Republics: The United States in an Age of American Revolutions.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A20 | Tuesday, November 14, 2017 OPINION LETTERS TO THE EDITOR The Great Progressive Tax Escape Let the Military Focus on Essential Missions emocrats contend that marginal tax month by promising to soak the rich even rates don’t matter to investment and more, and his legislature will oblige. growth, and even some conservative The prospect of future tax hikes appears to intellectuals are conceding the have propelled an exodus of IRS data show an point. But the evidence from high earners from Illinois, wealth fleeing high-tax states which has a relatively low and accelerating flight shows how sensitive the affluflat 4.99% income tax. Demofrom high-tax states. ent are to rate increases. crats raised the rate from 3% The liberal tax model is to in 2010, but the tax hike fleece the rich to finance lapsed in 2015 after Bruce spending on entitlements and government pro- Rauner became Governor. House Speaker Migrams that invariably grow faster than the chael Madigan finally this summer secured GOP economy and revenues. IRS data on tax migra- legislative support to override the Governor’s tion show this model is now breaking down in veto and reinstate the higher rate. progressive states as the affluent run for cover But the tax increase won’t raise enough money and the middle class is left paying the bills. to finance the state’s $250 billion unfunded penBetween 2012 and 2015 (the most recent sion liability, and the long-time goal of unions has data), a net $8.5 billion in adjusted gross in- been to enact a graduated income tax. The afflucome left New Jersey while $6.2 billion poured ent know they’ll get soaked eventually and are out of Connecticut—4% of the latter state’s total seeking shelter. Top earners made up 47% of Illiincome. Illinois lost $13.6 billion. During that nois’s income flight in 2015 compared to 33% four period, Florida with no income tax gained $39.3 years earlier. Income taxes from the 306 Cook billion in AGI. (See the nearby table.) County denizens who decamped to Palm Beach Not surprisingly, income flows down the tax in 2015 with $258 million of income could have gradient. In 2015 New York (where the com- paid 200 teacher salaries. Alas. bined state and local top rate is 12.7%) lost a net This millionaires’ diaspora has harmed in$850 million in AGI to New Jersey (8.97%) and come and economic growth. Real GDP between Connecticut (6.99%). At the same time, the Gar- 2011 and 2016 grew annually at a paltry 0.2% den State gave up $335 million to Pennsylvania in Connecticut, 1% in Illinois and 1.2% in New (3.07%), and $60 million left Connecticut for the Jersey, according to the Bureau of Economic state formerly known Analysis. These states as Taxachusetts (5.1%). were the slowest Taxpayers from New State Taxpayer Flight growing in their reYork, New Jersey and Gross migration (in billions of dollars) into and out of spective geographic Connecticut escaped to select states in adjusted gross income, as reported on regions, though other Florida with $3.2 bil- individual income tax returns high tax states in the lion in income. Florida Northeast didn’t fare New Jersey Connecticut Illinois Florida Gov. Rick Scott ought to much better. -$1.7 -$1.8 -$3.3 $9.0 pay these states a com- 2012 As a result, revenues mission. have repeatedly fallen 2013 -1.7 -1.8 -3.9 8.7 The affluent account short of projections in -2.5 -1.3 -3.0 10.1 for a disproportionate 2014 New Jersey, Illinois and -2.6 -1.3 -3.4 11.5 share of the income mi- 2015 Connecticut while budgration. For instance, get deficits have balSource: IRS THE WALL STREET JOURNAL individuals reporting looned. Democratic more than $200,000 in AGI in 2015 made up lawmakers have cut public services and funds 57% of the income outflow from Connecticut to local governments, which have responded by (compared to 48% of total state AGI) and 57% raising property taxes. of the inflow to Florida. The Tax Foundation says New Jersey, ConSnowbird flight isn’t new, but migration has necticut, Vermont, New York and Illinois have accelerated as taxes have increased. Income the highest property taxes in the country. Over outflow from Connecticut averaged $500 mil- the last two years, the average Chicago homelion between 2003 and 2007. Then in 2009 GOP owner’s property taxes have risen by roughly Gov. Jodi Rell raised the top tax rate to 6.5% $1,000. Higher property taxes hit middle-class from 5%, which her Democratic successor Dan- earners especially hard and are another incennel Malloy lifted a few years later to 6.7% and tive to leave a state. i i i again two years ago to 6.99%. AGI outflow beAs these state laboratories of Democratic tween 2012 and 2015 averaged $1.6 billion. In 2004 Democrats raised New Jersey’s top governance show, dunning the rich ultimately rate on individuals earning more than $500,000 hurts people of all incomes by repressing the to 8.97% from 6.37%. Between 2012 and 2015, an- growth needed to create jobs, boost wages and nual income outflow from New Jersey averaged raise government revenues that fund public ser$2.1 billion—twice as much as between 2000 and vices. If the Republican House and Senate taxreform bills follow through with eliminating all 2003 after adjusting for inflation. Republican Gov. Chris Christie blocked his or part of the state and local tax deduction, proDemocratic legislature’s attempts to reimpose gressive states will have an even harder time a millionaire’s tax that lapsed in 2009. But Dem- hiding the damage. They should be the next ocratic Governor-elect won the election this candidates for reform. O Oh, No, a Pharma Exec ne reason men and women in business are reluctant to go to Washington is the reception accorded Alex Azar Monday after President Trump said he will nominate the former Eli Lilly & Co. executive to lead the Health and Human Services Department. Mr. Azar was immediately criticized for, well, knowing too much about health care. “It’s a pharma fox to run the HHS henhouse,” a talking head from Public Citizen told the Washington Post, which headlined the same piece “Trump’s pick to lower drug prices is a former pharma executive who raised them.” It seems that when Mr. Azar was president, Lilly “doubled the U.S. list price of its top-selling insulin drug.” T Well, sure, pharma executives are paid by shareholders to make money selling drugs. Profits drive drug innovation, so there wouldn’t be better treatments without profits, which sometimes requires raising prices. Pardon the reality of market economics. No doubt Mr. Azar’s record will be parsed by Senate Democrats, but it’s always possible that knowing the industry makes Mr. Azar the right man to regulate it. He can’t do any worse than the Obama Administration, which cut a political deal with Big Pharma on drug pricing to win its support for ObamaCare. Mr. Azar has been a critic of ObamaCare, which may be the real explanation for the instant opposition. The Menu Label Cops Win he Trump Administration is knocking number of pepperonis on a pizza depends on the down stupid or destructive regulations pie’s size and whether someone also adds onions at a fast clip, though one of the more ri- and sausage. diculous Obama-era directives FDA’s guidance suggests How many calories are listing calorie ranges for every survives: Last week the Food and Drug Administration istopping. For instance: 45-60 in a pizza slice? The sued draft guidance on a longcalories for bacon, depending FDA demands to know. on the pizza’s size. The picdelayed rule for calorie boards at chain restaurants, and Contured examples then feature gress ought to intervene. an asterisk that denotes the FDA released guidance for posting calorie estimate is based on how many calories are disclosures at restaurants with more than 20 added to a one-topping pizza. This is hardly locations, and the ostensible point is to help clear for customers. folks choose healthier foods. The regulations, The guidance allows some flexibility on kiwhich are an outgrowth of the 2010 Affordable osks and computer tablets, provided stores Care Act, are set to hit in May 2018 after years don’t have other “menu boards,” with a long deof delays. Most recently, the Trump Administra- lineation on what constitutes a menu board. tion hit pause on the rules to solicit more feed- This is a waste of time. Dominos already runs back, but it appears the agency is pressing on an online Cal-O-Meter that allows customers to with small clarifications. tally up the damage of the Superbowl feast, and The reason some restaurants have spent most customers order pizza online and not in years fighting these rules is not because execu- stores. tives lay awake at night plotting how to make Congress for years has sat on a bill that Americans obese. It’s because the rules are loco. would allow more flexibility on displaying inFor instance: There was confusion over whether formation online, with more legal clarity. The marketing material counted as a menu board rules are so vague that companies could face a and thus required calorie disclosures. crush of lawsuits, which will be abetted by this FDA’s guidance says a flyer generally isn’t a “nonbinding” FDA guidance. menu—what a relief—but there are other probFDA has more pressing priorities than microlems. Take pizza companies, which have to dis- managing pizza companies, and perhaps Complay per slice ranges or the number for the en- missioner Scott Gottlieb wants to wrap up this tire pie. Calories vary based on what you order— fight and move on. But these rules carry real the barbarians who put pineapple on pizza are costs, and sanity from Congress could move consuming fewer calories than someone who millions of compliance dollars back into more chooses pepperoni and extra cheese. But the productive uses. Regarding your editorial “Bad Marks for a Good Military” (Nov. 7): Saying “Congress needs to allocate enough money to adequately train sailors” doesn’t address the core issue of failure. Funding wasn’t the problem; it was as always a complete lack of leadership at the highest levels. This episode falls on admirals who wanted a third or fourth star and were eager to compliment a pitifully naive and unprepared new entrant to the presidency who saw the military as a petri dish for social change and was willing to cripple the national defense to that end. Yes, the officers and senior NCOs received training, but it was refocused from bridge command and control to diversity training. Now they can’t run a ship but are fully proficient in diversity issues. Perhaps with a new commander in chief we’ll get our priorities back in line with the brick and mortar of national defense. RANDY WEST San Diego Mr. West flew 127 combat missions over North Vietnam from the USS Kitty Hawk. Regardless of one’s view of the sentencing of former Sgt. Bowe Bergdahl for desertion, the state of our military is at far greater peril than SCOTT OLSON/GETTY IMAGES D REVIEW & OUTLOOK the editorial suggests. Two factors, if left unchecked, will lead to a “hollow force”: uncontrolled internal real-cost growth of 5%-7% a year (as reported by the Defense Business Board) and the gross mismatch between and among strategy and operational requirements, force levels and budgets. A hollow force won’t be ready or sufficiently trained and equipped to carry out its duties or to win wars if needed. This is what happened after Vietnam. This is not the fault of the Pentagon. The current budgetary-oversight process is Frankensteinian and is also at fault. The nation has three choices: ignore this reality, spend more money or balance the strategy requirements, force levels and budget imbalance. If we defer or ignore this looming reality, a hollow force will be inevitable. HARLAN ULLMAN Washington President Must ‘Faithfully Execute’ the Laws William Galston’s “Donald Trump’s Belated Civics Lesson” (Politics & Ideas, Nov. 8) suggests that because Congress created the position of attorney general, the president needs to keep his hands off the Justice Department and refrain from providing direction to it. Based on this logic, the president should stay out of foreign affairs, have nothing to do with defense and keep his hands off every cabinet department since all of these are creations of Congress. The problem with Mr. Galston’s fictional independent Justice Department is that the president is elected and therefore accountable to the people. Mr. Galston’s independent attorney general, secretary of defense and secretary of state wouldn’t be accountable to anyone. They are not elected. Mr. Galston effectively wants a new and unaccountable branch of government but ignores Article II, Section 3 of the Constitution which says the president “shall take Care that the Laws be faithfully executed.” How does the president ensure laws are faithfully executed if he doesn’t have access to the Justice Department? We’ve elected a president to run the country. He is accountable to us at election time and to Congress through appropriations, legislation and possible impeachment. Let him do his job. DOUG SCHENK Little River, S.C. I’d be more inclined to thoughtfully consider Mr. Galston’s argument if I Hoover Was a Visionary Regarding Latin America Edward Kosner, in his review (“A Wonder Boy on the Wrong Side Of History,” Books, Oct. 28) of Kenneth Whyte’s “Hoover,” a new biography of Herbert Hoover, neglects to make any mention of the fact that it was Hoover who began to repair U.S. relations with Latin America which is usually credited to his successor Franklin Roosevelt as part of the Good Neighbor Policy. Taking advantage of the period between his election in November 1928 and his inauguration the following March, Hoover embarked on a boat trip around South America where he experienced the furious hostility that decades of U.S. invasions and interventions throughout the Caribbean Basin had engendered. Hoover astutely understood how this antiAmericanism could negatively impact U.S. companies doing business in the region. Hence, as president, Hoover ended the U.S. occupation of Nicaragua and began the process for doing so in Haiti. He also didn’t intervene in Cuban internal affairs, despite the existence of the Platt Amendment, and effectively abrogated Teddy Roosevelt’s Corollary to the Monroe Doctrine. He would likely have done much more had he not been stymied by the unfolding economic disaster most often associated with his oneterm presidency. THOMAS ANDREW O’KEEFE New York Letters intended for publication should be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, or emailed to email@example.com. Please include your city and state. All letters are subject to editing, and unpublished letters can be neither acknowledged nor returned. could recall any instance of him similarly lecturing Barack Obama regarding his constitutional abuses such as spending unauthorized funds on ObamaCare subsidies or mobilizing Justice and the IRS against his political foes. BILL DOMOE Grafton, Wis. The president’s suggestions might be driven by politics, but the same could be true of any investigation. If there was evidence of a conspiracy to violate pollution laws, would a president’s order to investigate it be improper if he did it to curry favor with his base? JAMES DUEHOLM Washington Mr. Galston argues that assigning jail time for offenses committed during an election campaign is only “what autocrats do.” But the Watergate break-in was just such a crime. Many went to jail. Nothing autocratic about it. WILLIAM D. EISENHOWER Beaumont, Calif. Seoul’s Position on Thaad: Threat to U.S. Troops There Your editorial “South Korea’s Bow to Beijing” (Nov. 8) could be expanded to note that the deployment of the U.S.-made Terminal High-Altitude Air Defense (Thaad) missile system also has, in addition to deterring or protecting from attacks by North Korea, the critical role of protecting the 30,000 U.S. service members stationed there with their families and the equipment and supplies which support them. South Korea may decide for itself the amount of protection to provide for its population. It is another matter to allow South Korea to decide on the amount of protection given the forces the U.S. is dedicating to Korea’s protection. We, on the other hand, have an overriding interest in protecting our own. If South Korea has priorities that increase the exposure of U.S. forces and their families to a less than maximum degree, we should remove our forces and station them to a country that more appreciates our protection, or we should bring them home. MICHAEL P. GRAFF New York Pepper ... And Salt THE WALL STREET JOURNAL “These financials look right. They smell right – they’re either right or very clever.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | A21 OPINION By John M. Ellis T he sheer public spectacle of near-riots has forced some college administrators to take a stand for free expression and provide massive police protection when controversial speakers like Ben Shapiro come to campus. But when Mr. Shapiro leaves, the conditions that necessitated those extraordinary Political imbalance causes intellectual degradation. Riots against free speech are only a symptom. measures are still there. Administrators will keep having to choose between censoring moderate-toconservative speakers, exposing their students to the threat of violence, and spending hundreds of thousands of dollars on every speaker. It’s an expensive treatment that provides only momentary relief from a symptom. What then is the disease? We are now close to the end of a half-century process by which the campuses have been emptied of centrist and right-of-center voices. Many scholars have studied the political allegiances of the faculty during this time. There have been some differences of opinion about methodology, but the main outline is not in doubt. In 1969 the Carnegie Commission on Higher Education found that there were overall about twice as many left-of-center as right-of-center faculty. Various studies document the rise of that ratio to 5 to 1 at the century’s end, and to 8 to 1 a decade later, until in 2016 Mitchell Langbert, Dan Klein, and Tony Quain find it in the region of 10 to 1 and still rising. Even these figures understate the matter. The overall campus figures include professional schools and science, technology, business and mathematics departments. In most humanities and social-science departments—especially those central to a liberal education, such as history, English and political science— the share of left-of-center faculty already approaches 100%. The imbalance is not only a question of numbers. Well-balanced opposing views act as a corrective for each other: The weaker arguments of one side are pounced on and picked off by the other. Both remain consequently healthier and more intellectually viable. But intellectual dominance promotes stupidity. As one side becomes numerically stronger, its discipline weakens. The greater the imbalance between the two sides, the more incoherent and irrational the majority will become. What we are now seeing on the campuses illustrates this general principle perfectly. The nearly complete exclusion of one side has led to complete irrationality on the other. With almost no intellectual opponents remaining, campus radicals have lost the ability to engage with arguments and resort instead to the lazy alternative of name-calling: Opponents are all “fascists,” “racists” or “white supremacists.” GEORGE FREY/GETTY IMAGES Higher Education’s Deeper Sickness Protesting Ben Shapiro at the University of Utah, Sept. 27. In a state of balance between the two sides, leadership flows naturally to those better able to make the case for their side against the other. That takes knowledge and skill. But when one side has the field to itself, leadership flows instead to those who make the most uncompromising and therefore intellectually least defensible case, one that rouses followers to enthusiasm but can’t stand up to scrutiny. Extremism and demagoguery win out. Physical violence is the endpoint of this intellectual decay—the stage at which academic thought and indeed higher education have ceased to exist. That is the condition that remains after Mr. Shapiro and the legions of police have left campus: More than half of the spectrum of political and social ideas has been banished from the classrooms, and what remains has degenerated as a result. The treatment of visiting speakers calls attention to that condition but is not itself the problem. No matter how much money is spent on security, no matter how many statements supporting free speech are released, the underlying disease continues to metastasize. During the long period in which the campus radical left was cleansing the campuses of opposition, it insisted that wasn’t what it was doing. Those denials have suddenly been reversed. The exclusion of any last trace of contrary opinion is not only acknowledged but affirmed. Students and faculty even demand “safe spaces” where there is no danger that they will be exposed to any contrary beliefs. It is important to understand why the radical left cleared the campuses The Perversity of the FCC’s Ownership Limits By Preston Padden T he FCC is reconsidering some of its rules on the ownership of TV stations. These regulations date back to a bygone era of scarcity—predating cable television, the internet, video downloads, streaming, social media and other innovations that give consumers an array of competitive options. I have friends who believe that the public interest requires the FCC to keep its TV ownership rules. But my personal experience in the industry for over 40 years has shown me that For decades, rules meant to promote diversity stood in the way of a fourth major television network. TV ownership limits intended to enhance diversity often stifle competition and inhibit innovation and growth in the industry. My first job, in 1973, was at Metromedia Inc., a company that had emerged out of the ashes of the DuMont Television Network. In the late 1940s, television pioneer Allen DuMont warned the FCC that it must assign at least four VHF stations to each major market to ensure the survival of the four television networks. The FCC ignored his advice and proved DuMont right—his network folded, leaving the nation for decades with only three commercial TV networks. Reading this history was my first lesson in how well-meaning FCC rules can have unintended consequences for competition and diversity. As the DuMont Network was going out of business, it spun off to shareholders the TV stations it owned in New York and in Washington. Businessman John Kluge acquired de facto control of the new company and named it Metromedia. Kluge struggled to create a fourth network. He aggressively sought to expand Metromedia’s portfolio of owned television stations—the indispensable foundation of any network. But his efforts were thwarted by the FCC’s own rules limiting ownership. One particularly prominent obstacle was the FCC’s “top 50” policy, which required a “compelling public interest showing” to own more than three stations, or more than two VHF stations, anywhere in the top 50 markets. Of course, the three entrenched networks owned more than that, but they were grandfathered in. The first decade of my life in the industry was consumed drafting and advocating for waivers of the FCC’s TV station ownership limits and its top 50 policy to advance Metromedia’s quest for a fourth network. Despite spending millions of dollars on innovative programming, Metromedia could not overcome the handicap imposed by the FCC’s TV station ownership rules. Kluge failed to fulfill his objective—and the FCC’s—of creating a fourth network. So in 1985, Kluge sold his TV stations to Rupert Murdoch, who also acquired the then-bankrupt 20th Century Fox film studio. Together with Barry Diller and Jamie Kellner, Mr. Murdoch set out to create the long-sought fourth network. Again, FCC rules got in the way. On behalf of Fox, it fell to me to seek waivers of station ownership limits and other rules intended to promote diversity, such as the ban on cross-ownership of newspapers and the Financial Interest and Syndication Rules. The effort to create meaningful diversity required the FCC to waive its rules that were intended to create diversity. (Mr. Murdoch is executive chairman of News Corp, which publishes this newspaper.) Because the benefits of granting the Fox waiver requests were so obvious, even supporters of TV ownership regulation such as Sen. Ted Kennedy (D., Mass.), Gov. Mario Cuomo (D., N.Y.) and Sen. Dan Inouye (D., Hawaii) supported our waiver requests. Fox eventually succeeded in becoming the fourth major commercial network. But it is perverse to keep in place rules intended to promote competition and diversity if they have to be waived in order to achieve that objective. I offer this history because I lived it. On many occasions I thought: Why can’t the FCC see that these stationownership restrictions are preventing the creation of meaningful entities of scale that could bring to viewers the benefits of greater competition and diversity? In today’s world—with hundreds of cable and satellite networks, the internet and myriad audio, PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Rupert Murdoch Executive Chairman, News Corp Robert Thomson Chief Executive Officer, News Corp Gerard Baker Editor in Chief William Lewis Chief Executive Officer and Publisher Matthew J. Murray Deputy Editor in Chief DEPUTY MANAGING EDITORS: Michael W. Miller, Senior Deputy; Thorold Barker, Europe; Paul Beckett, Washington; Andrew Dowell, Asia; Christine Glancey, Operations; Jennifer J. Hicks, Digital; Neal Lipschutz, Standards; Alex Martin, News; Shazna Nessa, Visuals; Ann Podd, Initiatives; Matthew Rose, Enterprise; Stephen Wisnefski, Professional News Paul A. Gigot, Editor of the Editorial Page; Daniel Henninger, Deputy Editor, Editorial Page WALL STREET JOURNAL MANAGEMENT: Suzi Watford, Marketing and Circulation; Joseph B. Vincent, Operations; Larry L. Hoffman, Production EDITORIAL AND CORPORATE HEADQUARTERS: 1211 Avenue of the Americas, New York, N.Y., 10036 Telephone 1-800-DOWJONES DOW JONES MANAGEMENT: Mark Musgrave, Chief People Officer; Edward Roussel, Innovation & Communications; Anna Sedgley, Chief Operating Officer & CFO; Katie Vanneck-Smith, President OPERATING EXECUTIVES: Ramin Beheshti, Product & Technology; Jason P. Conti, General Counsel; Frank Filippo, Print Products & Services; Steve Grycuk, Customer Service; Kristin Heitmann, Transformation; Nancy McNeill, Advertising & Corporate Sales; Jonathan Wright, International DJ Media Group: Almar Latour, Publisher; Kenneth Breen, Commercial Professional Information Business: Christopher Lloyd, Head; Ingrid Verschuren, Deputy Head video and other content providers— that question is more compelling than ever. And at a time of escalating TV costs and cord-cutting, enabling the creation of additional free overthe-air programming would be a great public service. Some oppose repeal of the TV station ownership rules because one beneficiary of repeal might be Sinclair Broadcasting Co., which has conservative views. Those critics would be the first to insist that federal licensing decisions cannot— must not—be based on political views. And for all we know, the next beneficiary of deregulation could have liberal views. That is what free markets, competition and diversity are all about. My experience with the television ownership rules leaves no doubt that consumers will be well served by their repeal. Mr. Padden is a consultant and former media executive. This article is adapted from an Aug. 28 blog post for Broadcasting & Cable. 60 YEARS OF ADVENTURE AND DISCOVERY of opposing voices. It was not to advance higher education, for that must involve learning to evaluate competing ideas, to analyze the pros and cons of rival arguments and concepts. Shutting down all but one viewpoint is done to achieve the opposite: to pre-empt analysis and understanding. Only in the absence of competing ideas can the radical sect that now controls so much of the campuses hope to thrive and increase its numbers, because it can’t survive open debate and analysis, and its adherents know it. Given that treating only symptoms is ultimately pointless, is there any cure for the disease? The radical left won’t voluntarily give up the stranglehold on higher education that it has worked unrelentingly to gain. But that can’t be the end of the matter: The public pays huge sums, both through tuition and taxation, to educate young people, and except in STEM subjects most of that money is being wasted. Those who pay the bills have the power to stop this abuse of higher education if they organize themselves effectively. Colleges need to be accredited; state universities answer to governing boards. Accrediting agencies and governing boards are created through a political process. What if voters were to insist that those agencies demand answers to some elementary questions? For example: How can a department of political science that excludes half the spectrum of viable political ideas be competent to offer degrees in the field? How can a history curriculum be taught competently when only one extremist attitude to social and political questions is present in a department? How can a campus humanities faculty with the same limitation teach competently? How can these extraordinary deficiencies deserve either accreditation, or support by state and federal funds? The campus radical monopoly on political ideas amounts to the shutting down of liberal higher education as we have known it. That, not the increasingly frequent violent flare-ups, is the real crisis. Mr. Ellis is a professor emeritus of German literature at the University of California, Santa Cruz, and chairman of the California Association of Scholars. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A22 | Tuesday, November 14, 2017 THE WALL STREET JOURNAL. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com TECHNOLOGY: SOFTBANK PURSUES GRAND VISION WITH UBER DEAL B4 BUSINESS & FINANCE © 2017 Dow Jones & Company. All Rights Reserved. S&P 2584.84 À 0.10% S&P FIN À 0.18% * * * * S&P IT g 0.01% THE WALL STREET JOURNAL. DJ TRANS À 0.18% WSJ $ IDX À 0.17% Tuesday, November 14, 2017 | B1 LIBOR 3M 1.416 NIKKEI (Midday) 22441.24 À 0.27% Google FacesRegulatoryFire inU.S. Missouri probes giant, which had avoided scrutiny at home despite inquiry abroad BY JACK NICAS Google is facing a new front in its regulatory battles after Missouri’s attorney general launched a broad investigation into whether the internet giant’s business practices violate STREETWISE By James Mackintosh the state’s consumer-protection and antitrust laws. Missouri Attorney General Josh Hawley on Monday said he issued an investigative subpoena to probe Google’s collection of user data, its use of other sites’ content, and its alleged manipulation of search results to favor its own services. Google, a unit of Alphabet Inc., has so far skirted the scrutiny in the U.S. that it has faced in Europe, where regulators levied a record $2.7 billion fine against Google in June for allegedly favoring its shopping ads in its search results. Mr. Hawley said his investigation was in part prompted by the European fine. “We’re concerned they’re engaged in a similar pattern of behavior in the United States,” he told reporters. Google said in a statement: “We have not yet received the subpoena; however, we have strong privacy protections in place for our users and continue to operate in a highly competitive and dynamic environment.” It has disputed European regulators’ charges. The Federal Trade Commission ended a nearly two-year antitrust investigation into Google in early 2013 after the company agreed to make some changes to its business practices for five years—a period that is about to expire. In the U.S., some federal lawmakers such as Sen. Al Franken (D., Minn.) have called for new probes into the company’s power. Mr. Hawley said the FTC went too easy on Google. “That seemed to me to be short even of a slap on the wrist. Now this is why I think there needs to be a fuller inquiry,” he said in an interview. “I don’t see a lot of action coming out of Washington. I don’t see a lot of action coming out of the FTC.…So I think that it’s important that some law-enforcement agency actually steps forward.” The FTC pointed to past Please see GOOGLE page B2 Yield-Seeking Investors Hunger for Egypt’s Government Debt Small IPOs Are Dying. That’s Good The U.S. stock market is eating itself, and nothing could be better for shareholders. There has been a decadelong drought in initial public offerings, fewer companies are listed now than four decades ago and companies are buying back as many or more shares than they sell. The shrinking number of stocks has prompted a lot of hand-wringing among economists, who worry that companies are deterred from accessing capital markets by shorttermist shareholders and aren’t investing enough. The alternative theory is much more upbeat: Markets have become more efficient, and America is awash in capital. There is a genuine problem of reduced competition, but that isn’t the fault of the capital markets. Mentioning the words “efficient” and “markets” in the same sentence has been a route to ridicule since the financial crisis. But when it comes to smaller companies, it seems founders and CEOs have indeed found a way to eliminate one of the market’s bestknown anomalies, known as the small-capitalization effect. Small-cap stocks used to beat the market pretty reliably. Economists argued over whether this was a reward for the extra risk they carried or was a result of investors being unwilling to spend the time and effort to research tiny companies. Either way, it meant smallcap stock prices were on averPlease see STREET page B9 A Cairo vegetable market Investors snapped up Egypt’s local currency bonds after its pound lost 50% of its value and the central bank sharply raised interest rates. See article on B9 How many Egyptian pounds a dollar buys 8 Egyptian pounds Percentage of local-currency bond managers with exposure to Egyptian debt and the pound Egypt’s overnight deposit rate 60% 20% 10 50 12 40 Scale inverted to show weakening Egyptian pound 14 16 18 Exposure to Egyptian bonds Exposure to Egyptian pound 30 14 12 10 10 Source: Tullett Prebon (currency); eVestment (bonds, pound); FactSet (rate) 0 8 0 2016 2016 ’17 16 20 0 20 18 ’17 PHOTO: MOHAMED ABD EL GHANY/REUTERS 2016 ’17 THE WALL STREET JOURNAL. New U.S. Boss Must Refresh Bud BY JENNIFER MALONEY Anheuser-Busch InBev NV is shuffling the leadership of its North American business, putting another company veteran from Brazil in charge of the largest U.S. brewer as it struggles to end a long slump in sales of Budweiser and Bud Light. Michel Doukeris, chief sales officer for the global brewer, will take the helm of the U.S. subsidiary, Anheuser-Busch, on Jan. 1, succeeding João Castro Neves, who has run the division since 2015. Mr. Castro Neves, 50 years old, is leaving after 22 years at the company “to pursue other opportunities,” AB InBev said. The shake-up includes a handful of other executive changes, including the promotion of a PepsiCo Inc. alum and former U.S. intelligence officer, Brendan Whitworth, to vice president of sales for North America, succeeding Brazilian Alex Medicis. AB InBev’s sales in the U.S. have fallen as Americans shift away from domestic lagers toward craft beers, Mexican imports, wine and spirits. The company’s share of the U.S. beer market, its largest, fell to 44.1% in 2016 from 50.6% in 2008, according to research firm Euromonitor International. That slide has continued this year, especially for its biggest seller, Bud Light. The management changes mark a new phase for the company’s U.S. operations, said Carlos Brito, chief executive of the Belgium-based behemoth. The first phase, after InBev’s 2008 takeover of Anheuser-Busch, was aimed at cutting costs and paying off debt. The second focused on expanding the portfolio with craft beers and growing higher-end brands such as Stella Artois and Michelob Ultra, Mr. Brito said. “Now, we’re going to have a Please see BUD page B2 See more at WSJMarkets.com Qualcomm Rebuffs Bid From Broadcom BY TED GREENWALD Qualcomm Inc. rejected Broadcom Ltd.’s unsolicited $105 billion offer, setting up a potentially hostile showdown between two giants of the chip industry over what would be the biggest technology takeover ever. A combination of the two would create a huge company whose chips manage communications for consumer devices and appliances, phone-service providers and data centers. In a statement Monday, Qualcomm’s board said the offer, which Broadcom submitted last week, dramatically undervalues the company and comes with significant regulatory uncertainty. Broadcom said it remains committed to the deal. With Qualcomm’s rejection of Broadcom’s bid, both companies are under pressure to press their agendas as quickly as possible. The rejection could lead to a higher bid from Broadcom, and it sets the stage for a possibly drawn-out struggle for control of the Qualcomm board. Broadcom could try to stack that board with directors sympathetic to its goal. Broadcom has a few weeks to meet a deadline for submitting its slate of nominees and a few months to persuade Qualcomm shareholders to vote for them before the likely date of its next annual stockholder meeting, according to a person familiar with the matter. Qualcomm, for its part, is under pressure to close its acquisition, announced late last year, of automotive chip leader NXP Semiconductors NV. That deal could add enough per-share earnings to persuade investors that its value exceeds Broadcom’s bid, some analysts say. Broadcom’s pursuit also adds pressure on Qualcomm to settle its differences with Apple Inc. over patent royalty fees. The conflict threatens to hold up billions in annual royalties revenues, and it risks emboldening other customers and licensees to follow Apple’s lead. — Cara Lombardo contributed to this article. INSIDE Weinstein Directors Dispute Boies Role ANDREW HARRER/BLOOMBERG NEWS BY KEACH HAGEY High-profile litigator David Boies Star lawyer David Boies fended off concerns of Weinstein Co. directors about Harvey Weinstein’s alleged sexual harassment and assault without alerting them he was in business with Weinstein Co., according to two board members. Weinstein Co. independent directors Tarak Ben Ammar, an international movie producer, and Lance Maerov, executive vice president at ad-agency giant WPP, said in interviews they didn’t know Mr. Boies had a film-business relationship with the company while he was negotiating a contract on Mr. Weinstein’s behalf in 2015. Mr. Boies has invested in at least three films with Weinstein Co., according to people familiar with the matter, one of which was distributed by the company last year after the film ran into financial troubles. In a statement, Mr. Boies said “the board was aware of the investments.” A person familiar with the matter said Mr. Boies’s investment in the film that was distributed last year amid contract talks was listed in materials given to the board, and was reported in the trade press. Mr. Ben Ammar said the board was presented the names, directors and budgets of the films Mr. Weinstein was working on during the contract negotiations, but “I have no recollection that they listed David Boies as the producer, especially when you have 50 movies.” “Had we known, we would have immediately said to David Boies, ‘You can’t negotiate Harvey’s contract,’” Mr. Ben Ammar said, calling it a conflict of interest. Mr. Boies in his statement said it wasn’t a conflict. Legal ethics expert Stephen Gillers of New York University School of Law agrees with Mr. Boies. “I don’t think he had a duty to tell the board that he had this investment, because I don’t see that the board, as the other side of the negotiation and not a client, had any right to know that,” Mr. Gillers said. Some of the movie dealings were happening as Mr. Boies fought to keep the company’s board from accessing the executive’s personnel file while Weinstein directors were growing concerned about allegations of sexual assault that appeared in the media in the spring of 2015, and other alleged bad bePlease see BOIES page B2 BITCOIN SINKS 25% IN LATEST SWING CURRENCIES, B10 PRICES OF USED CARS HOLD FIRM AUTOS, B5 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B2 | Tuesday, November 14, 2017 INDEX TO BUSINESSES E Airbus..........................B3 Alaska Gasline Development...........B11 Alphabet......................B1 Altice USA..................A6 Anheuser-Busch InBev .....................................B1 Eli Lilly........................A2 Embraer.......................B3 Euromonitor International.............B1 B Baker Hughes...........A13 Bank of New York Mellon.......................B9 Barclays.......................B5 BB&T ........................... A6 Boeing ......................... B3 Bombardier..................B3 Broadcom.............B1,B10 Brookfield Property Partners....................B3 Buffalo Wild Wings....B5 C Cboe Global Markets B10 Cheniere Energy........B11 Citigroup......................B9 CME Group................B10 CVS Health..................B4 PepsiCo........................B1 PNC Financial Services Group ........................ A6 Proteus Digital Health .....................................B4 F Q Ford Motor..................B5 Qualcomm............B1,B10 G R General Electric ......................A1,B10,B11 GGP..............................B3 Goldman Sachs Group B5 Relativity Media.........B2 Renault........................B4 Roark Capital Group...B5 H Snap............................A6 SoftBank Group..........B4 SolarWorld Americas . R6 Sullivan & Cromwell...B2 Suniva..........................R6 SunTrust Banks..........A6 Hasbro.......................B10 J JPMorgan Chase.........B9 M Marcato Capital Management.............B5 Mattel........................B10 Microsoft.....................B2 Mitsubishi Motors......B4 N Nissan Motor..............B4 Novartis.......................B4 D O-P Delta Air Lines ........... B3 Didi Chuxing Technology .....................................B4 Oracle .......................... B4 Otsuka Pharmaceutical .....................................B4 S T Trian Fund Management ...................................A13 Tyson Foods................B5 U Uber Technologies ...... B4 U.S. Bancorp...............A6 W Weinstein....................B1 Z Zions Bancorp.............A6 INDEX TO PEOPLE A Alsaadi, Nawar ........... R5 Ammar, Tarak Ben......B1 B Barrineau, Jim............B9 Boies, David................B1 Brito, Carlos................B1 C Castro Neves, João.....B1 Cohen, Rodgin.............B2 Cromer, Fred ............... B3 D Dehn, Jan....................B9 Doukeris, Michel.........B1 Dudley, Louise...........B11 Duterte, Rodrigo.........A8 E Economides, Nicholas.B2 F-G Flannery, John.....A1,B11 Garden, Ed ................ A13 Gibbons, Thomas........B9 Gillers, Stephen..........B1 Goeler, Andy ............... B2 Gordon, Kate...............R5 Goyal, Anil...................B5 H Hallam, Roger...........B11 Heckman, Dan...........B10 I Immelt, Jeffrey.A13,B11 K Kablawi, Hani..............B9 L La Salla, Francis ......... B9 M Maerov, Lance.............B1 Marinov, Valentin.....B11 McAlister, Kevin.........B3 McDonagh, Colm.........B9 Medicis, Alex .............. B1 Mohr, Patrick ............ B11 P Patel, Viraj................B11 Peterffy, Thomas......B10 Prime, Denise ............. B9 R Reback, Gary...............B2 Ren, Zhiwei...............B10 S Santomassimo, Michael .....................................B9 Scharf, Charles............B9 Seba, Tony...................R5 Seshadri, Gautam.......B4 Shea, Brian ................. B9 Slattery, John.............B3 Son, Masayoshi .......... B4 W Weinstein, Bob...........B2 Weinstein, Harvey......B1 Whitworth, Brendan...B1 BUSINESS & FINANCE BOIES Continued from the prior page havior, according to documents reviewed by The Wall Street Journal. The board fired Harvey Weinstein Oct. 8 after media reports included on-the-record claims that Mr. Weinstein harassed or assaulted actresses or employees. Through his spokeswoman, Mr. Weinstein has denied allegations of nonconsensual sex. The dual roles Mr. Boies played with Mr. Weinstein have triggered questions from the two directors about why the lawyer fought so hard to keep Mr. Weinstein’s personnel file from them, as shown in the documents. After the scandal concerning Mr. Weinstein surfaced, several board members resigned, leaving Messrs. Ben Ammar and Maerov, the two independent directors, and Mr. Weinstein’s brother, Bob Weinstein, on the board. Bob Weinstein didn’t respond to a request for comment. In 2015, as Mr. Boies was negotiating Mr. Weinstein’s contract with directors, the company’s five independent board members were receiving “numerous credible reports from company insiders that employees had previously lodged complaints against Mr. Weinstein, including for sexual harassment, intimidation and physical assault,” according to an Aug. 6, 2015, letter to Mr. Boies from Philip Richter, a lawyer hired by the independent directors, that was reviewed by the Journal. The company’s independent board members began a review of Mr. Weinstein’s dealings in November 2014, after a number of his expenses raised questions, according to the documents. Mr. Weinstein’s spokeswoman had no comment on the HONG JIANPENG/IMAGINECHINA/ASSOCIATED PRESS GOOGLE Michel Doukeris will take the reins at Anheuser-Busch Jan 1. BUD Continued from the prior page more commercially minded person at the head of the business” with a background in sales and marketing, Mr. Brito said in an interview. The new chief’s mandate: to boost revenue. Mr. Doukeris, a 44-year-old Brazilian, joined the company in 1996. He worked as vice president of soft drinks for Latin America before moving to China, where he rose to become head of the company’s Asia-Pacific operations in 2013. He is based in New York. The new Anheuser-Busch chief said he aims to increase speed to market and pledged to invest more in data and analytics to do more targeted local and regional marketing. “We need to understand the consumer needs,” Mr. Doukeris said in an interview. Messrs. Doukeris and Brito said they would continue to develop the brewer’s portfolio to offer brands that work for different occasions and didn’t rule out further acquisitions. The company is still digesting its $100 billion merger with SABMiller last year, which lessened its reliance on the U.S. market. AB InBev has been unable to arrest a nearly two-decade 2008 ’10 ’12 ’14 ’16 decline in Budweiser sales, even as it has moved aggressively to expand Budweiser distribution around the globe. Retail store sales of Bud Light, the No. 1 U.S. beer brand by volume, fell 5.7% this year through Oct. 21, according to Nielsen data compiled by Beer Marketer’s Insights. Wholesalers, industry observers and former AnheuserBusch executives have faulted the company for frequent changes in its Bud Light marketing campaigns, high turnover in its brand leadership, and a lack of understanding of U.S. culture among those in charge of reviving an iconic American beer. AB InBev in March addressed some of those concerns with the announcement that Andy Goeler, a three-decade Anheuser-Busch veteran, would return to the helm of Bud Light, a brand he led in the 1990s. Mr. Brito said that for a brand so large, “it is sometimes a challenge to find the right tone. You need to appeal to a large group of consumers, but you need to have a target audience to really focus your communications. So how do you do that without alienating people?” Mr. Brito said he is optimistic about the brand’s two current campaigns and its recent push to court Hispanic consumers. “Of course, if you have people that understand the local culture and understand the business and love the company…this is a great combination.” Noting that Mr. Doukeris has a record of developing “local talent” in China, Mr. Brito pointed to the promotion of Mr. Whitworth, who joined AB InBev in 2013 after five years in PepsiCo’s Frito-Lay division. Mr. Whitworth, 41, previously served as a U.S. Marine Corps officer and as an operations officer for the Central Intelligence Agency’s clandestine service, according to his LinkedIn page. Continued from the prior page comments from commissioners that stated its “exhaustive investigation” into Google found the company’s practices weren’t “on balance, demonstrably anticompetitive.” Mr. Hawley, a 37-year-old Republican lawyer who was elected as Missouri’s attorney general last year, announced last month that he is running for Democratic U.S. Sen. Claire McCaskill’s seat in 2018. Some critics and competitors of Google see state attorneys general as potentially the most likely route to regulatory action in the U.S. Mississippi Attorney General Jim Hood has sued Google several times, including in January over its collection and use of data on Mississippi publicschool students who use its services. Mr. Hood is looking closely at other aspects of Google’s business and consid- questions about his expenses. The inquiry intensified in the spring of 2015 after Mr. Weinstein’s photo began appearing in New York tabloids in connection with allegations that he groped an Italian model, according to the documents. The directors pressed to review Mr. Weinstein’s personnel file, according to the documents the Journal reviewed. Mr. Boies argued they shouldn’t be allowed to see the file because they had been leaked to the media in the past, a claim the independent directors deny. Mr. Boies said in his statement that he had been articulating Mr. Weinstein’s position about the alleged leaks. Mr. Boies pushed to have a third party, Rodgin Cohen of law firm Sullivan & Cromwell, review the personnel file and write a report to the board. The directors agreed reluctantly after failing to obtain the file themselves, the people familiar with the matter say. Mr. Cohen wrote on Sept. 4, 2015, in a letter reviewed by the Journal, that based on his review of the file “there are no unresolved claims that could result in liability to TWC or its directors” and “no pending or threatened litigation.” The board voted to renew Mr. Weinstein’s contract as cochairman in the fall of 2015. Mr. Boies, who represented Al Gore in the 2000 presidential-election recount and argued for marriage equality before the Supreme Court, invests in films through the Boies/Schiller Film Group, which he co-founded with his law partner’s son, Zack Schiller. The most notable investment by Boies/Schiller was a $20million share in the Natalie Portman Western “Jane Got a Gun,” which Weinstein Co. and Relativity Media agreed in 2013 to distribute. After the muchdelayed project cycled through talent and racked up costs, Relativity went bankrupt in the summer of 2015. Weinstein Co. agreed to give the film a so-called service deal in theaters in January 2016, according to people familiar with the deal. With a service deal, a film’s producers give the distributor a percentage of the box-office returns to get a film onto movie screens, allowing the producers to reap greater revenues from selling the film to foreign markets. Weinstein released “Jane” without much marketing, and the film made just $1.5 million in its opening weekend and $3 million overall—a poor performance for a film that cost $25 million to produce. Weinstein Co.’s decision to release “Jane” this way came shortly after Mr. Boies in 2015 secured a new contract for Mr. Weinstein, the documents the Journal reviewed show. In a statement, Mr. Boies said the Boies/Schiller Film Group is still waiting to be paid by The Weinstein Co. for the theatrical run of “Jane.” —Zolan Kanno-Youngs contributed to this article. WEINSTEIN COMPANY/EVERETT COLLECTION These indexes cite notable references to most parent companies and businesspeople in today’s edition. Articles on regional page inserts aren’t cited in these indexes. A THE WALL STREET JOURNAL. * *** Boies/Schiller had a $20-million share in the Western ‘Jane Got a Gun’ starring Natalie Portman. ering further action, a person familiar with the matter said. Utah Attorney General Sean Reyes and District of Columbia Attorney General Karl Racine last year called on the FTC to reopen its antitrust investigation into Google. This year, when Mr. Reyes was a candidate for FTC chairman, Google deployed Republican lobbyists to dissuade Trump administration officials from naming him to the post, according to people familiar with the matter. Mr. Reyes said in an email that the FTC never replied to his call for a new federal probe. “We may have to take matters into our own hands as state attorneys general on those and possibly other issues,” he said. “In many ways, we can be more effective investigating and if necessary, holding companies accountable at the state level.” He declined to say whether his office was investigating Google. States usually team up to prosecute large corporations like Google, with bigger states like New York or California lead- why did the turtle cross the ocean? ing the way, said New York University economics professor Nicholas Economides. He predicted Missouri would try to recruit other states if it seeks charges. “Google is going to be a significant case,” he said. “If it’s going to be just Missouri, that would be a very unequal fight.” The federal government’s antitrust case against Microsoft Corp. in 2001 began with an investigation by the Texas attorney general, said Gary Reback, a key attorney who persuaded the Justice Department to sue Microsoft. How much is your broker charging you? US Margin Loan Rates Comparison Commission Rates Comparison $300K Equity Trades 2.32% 1 $2.34 2 Fidelity 6.82% $4.95 Schwab 6.82% $4.95 TD Ameritrade 7.50% $6.95 Interactive Brokers Each ﬁrm’s information reﬂects the standard online trades pricing obtained from the respective ﬁrm’s websites as of 11/3/17. Pricing and offers subject to change without notice. To see the full comparison visit: ibkr.com/compare-us One World, One Account Interactive Brokers Rated Low Cost by Barron’s 16 years in a row* Discover a world of investment opportunities with Ariel’s international and global strategies. We offer mutual funds and separate accounts spanning the market cap spectrum and covering the globe. arielinvestments.com/think-global Investors should consider carefully the investment objectives, risks, and charges and expenses before investing. For a current summary prospectus or full prospectus which contains this and other information about the funds offered by Ariel Investment Trust, call us at 800.292.7435. Please read the summary prospectus or full prospectus carefully before investing. Distributed by Ariel Distributors, LLC, a whollyowned subsidiary of Ariel Investments, LLC. Ariel Distributors, LLC is a member of the Securities Investor Protection Corporation. WSJ ©2017 Slow and steady wins the race. Trading on margin is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment. Member - NYSE, FINRA, SIPC – Supporting documentation for any claims and statistical information will be provided upon request. Services vary by ﬁrm. *Low Cost Rated by Barron’s 16 Years Straight - Low cost broker 2002 through 2017 according to Barron’s online broker reviews. For more information see, ibkr.com/info - Barron’s is a registered trademark of Dow Jones & Co. Inc.  IB calculates the interest charged on margin loans using the applicable rates for each interest rate tier listed on its website. For additional information on margin loan rates, see ibkr.com/interest.  The IB commission rates shown are the average of the client commissions for trades executed in Oct 2017 and are subject to minimums and maximums as shown on the IB website. Some of the ﬁrms listed may have additional fees and some ﬁrms may reduce or waive commissions or fees, depending on account activity or total account value. Under some commission plans, overnight carrying fees may apply. 11-IB17 1135 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com Tuesday, November 14, 2017 | B3 THE WALL STREET JOURNAL. BUSINESS NEWS Brookfield Confirms Its Offer For GGP Brookfield Property Partners LP confirmed it has made a $14.8 billion offer Monday to buy the shares of mall owner GGP Inc. that it doesn’t already own. Brookfield offered to pay $23 a share for the remaining 66% of GGP, half in cash and half in equity, the company said. The Wall Street Journal first reported Sunday that the proposal had been submitted to GGP’s board. The proposal represents a 21% premium to GGP’s closing price Nov. 6, before reports were published about a possible deal between the two companies. GGP shares rose 6% Monday, while Brookfield shares slid 3%. Some analysts said Monday Brookfield appears to be opening with a low bid. Analysts from research firm Boenning & Scattergood said that a bid would have to be at least $30 a share to be successful, adding that Brookfield’s offer could prompt mall-centered real-estate investment trust Simon Property Group Inc. to enter as a counter-bidder. Brookfield said the transaction would create a property company with nearly $100 billion of real-estate assets and annual net operating income of about $5 billion. Brookfield Property, which is part of Brookfield Asset Management Inc., owns or operates office properties, retail centers and multifamily housing units. GGP owns around 125 high-end retail centers around the U.S. GGP, formerly known as General Growth Properties, confirmed receipt of the offer Monday and said it has formed a special committee to carefully review the proposal. MICHAEL BUHOLZER/AGENCE FRANCE-PRESSE/GETTY IMAGES BY CARA LOMBARDO The Canadian aircraft maker’s single-aisle CSeries plane project has faced legal challenges from Boeing and Embraer over issues such as pricing and import tariffs. Bombardier Deal Sparks Pushback Tie-up with Airbus on CSeries planes is met with stepped-up resistance from rivals BY ROBERT WALL DUBAI—Struggling Bombardier Inc.’s move to give Airbus SE control of its CSeries plane project has driven rivals to renew their pledges to pursue legal complaints against the Canadian aircraft maker. Both Boeing Co., which already had the CSeries in its crosshairs before the involvement of its chief rival, and Brazil’s Embraer SA said this weekend they would stick with their legal challenges against Bombardier’s program. Embraer also warned Bombardier and Airbus against working on the project before the deal had won antitrust approval. The stakes are high, with the Airbus-Bombardier tie-up seen by some as the biggest shake-up of the commercial jetliner business in 30 years. Through the deal, Airbus would gain majority control of a joint venture building the single-aisle CSeries—a struggling program that the European company thinks could have big potential. Airbus forecasts a market of about 6,000 planes and expects the CSeries to win most of the deals in the 100- to 150-seat segment. At the Dubai Air Show—the first industrywide get-together since the deal was announced in October—tensions over the project were on display. Boeing has challenged Bombardier’s pricing of the CSeries, saying it was being sold to Delta Air Lines Inc. below cost, with its complaint prompting U.S. authorities in September to propose a 300% import tariff on the plane. In Dubai, Boeing’s commercial airplanes chief, Kevin McAllister, reiterated the U.S. company’s objections, saying the issue was one of “clear price dumping.” Fred Cromer, Bombardier’s president for commercial aircraft, said Boeing would struggle to demonstrate it was harmed, since the U.S. manufacturer doesn’t offer a plane that competes with the 100seat CS100 that Delta is buying. “We think that [proving harm] is very challenging,” Mr. Cromer said at the air show. Bombardier has said it was looking to assemble CSeries planes at an Airbus facility in Mobile, Ala., to circumvent the tariffs if they stick. Embraer was also resolute, with the firm’s commercial airplanes boss, John Slattery, saying the Airbus deal wouldn’t undermine Brazil’s World Trade Organization challenge of the CSeries program for alleged subsidies provided by the Canadian government. “The case will continue,” he said in an interview at the air show. Bombardier’s Mr. Cromer said the Canadian company was “fully compliant” with trade rules. Mr. Slattery also said Embraer would be watching closely to ensure Airbus officials don’t try to start selling CSeries planes before competition regulators give the deal a green-light. Antitrust approval is expected in late 2018. “Until antitrust immunity is granted, the Airbus marketing team cannot be involved in the aircraft. That will be something my team and I will be keeping a close eye on,” he said. Analysts say the Airbus deal could be a big boost for the CSeries because it brings certainty to the future of a jet series that has struggled to land new orders amid concerns about Bombardier’s financial health. Mr. Cromer said Bombardier could work with Airbus in a limited way before antitrust approvals were in hand. The two companies can jointly plan how to build the CSeries assembly facility in Mobile. That would position them to start construction once regulatory approvals are in place and have the facility operational about a year later. Under that schedule, CSeries deliveries to Delta may be delayed until the new facility is running, to try to avoid tariffs. Mr. Cromer said Bombardier would have to shuffle some delivery positions in 2018 to other customers. The aircraft maker forecasts 40 to 45 CSeries deliveries in 2018. Since Bombardier announced the deal with Airbus, it said it had won a commitment for up to 61 more CSeries orders from a European customer. Mr. Cromer wouldn’t identify the client, but said interest in the plane “continues to build.” 4 diverse solutions to help build a stronger portfolio. Conservative equity approach JPMORGAN EQUITY INCOME FUND HLIEX USE EVERY ASSET CLASS TO YOUR ADVANTAGE Total return with flexible exposure GBOSX JPMORGAN GLOBAL BOND OPPORTUNITIES FUND Globally diversified core holding GAOSX JPMORGAN GLOBAL ALLOCATION FUND Seeks smoother international ETF exposure JPIN JPMORGAN DIVERSIFIED RETURN INTERNATIONAL EQUITY ETF jpmorgan.com/funds/4solutions LET’S SOLVE IT. Investors should carefully consider the investment objectives and risks as well as charges and expenses of a fund. The prospectus contains this and other information about the fund and should be read carefully before investing. To obtain a prospectus for Mutual Funds: Contact JPMorgan Distribution Services, Inc. at 1-800-480-4111 or visit jpmorganfunds.com. Exchange Traded Funds: Call 1-844-4JPM-ETF or visit jpmorgan.com/ETF. International investing has a greater degree of risk and increased volatility due to political and economic instability of some overseas markets. Changes in currency exchange rates and different accounting and taxation policies outside the U.S. can affect returns. Investing involves risk, including possible loss of principal. J.P. Morgan ETFs are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. This communication is issued by Distribution Services Inc. and J.P. Morgan Institutional Investments, Inc., both members of FINRA/SIPC.; and J.P. Morgan Investment Management Inc. © JPMorgan Chase & Co., November 2017 B4 | Tuesday, November 14, 2017 * **** THE WALL STREET JOURNAL. TECHNOLOGY WSJ.com/Tech SoftBank Pushes Its Grand Vision Digital Pill Wins Masayoshi Son is piecing together network of ride-hailing firms in key markets FDA’s Approval SoftBank Group Corp.’s bid to take a stake of as much as $10 billion in Uber Technologies Inc. is a high-stakes bet on the future of the car industry. SoftBank’s billionaire founder, Masayoshi Son, aims to build a global network of ride-hailing companies with a lock on important markets that in the next 20 or 30 years could control fleets of vehicles and help dictate how people move around, say people briefed on his strategy. To do that, the Japanese tech-investment giant and a new fund it runs have invested billions of dollars in companies that dominate the business in China, India and Southeast Asia, as well as in Uber’s biggest rival in Brazil. Mr. Son took a step forward with his plans to buy as much as 14% of Uber on Sunday, when Uber board members settled a feud over control of seats, clearing the way for SoftBank’s tender offer. But not everyone shares Mr. Son’s grand vision, even within the companies in which SoftBank has taken a stake. Companies including Google parent Alphabet Inc. and car makers such as Toyota Motor Corp. and Nissan Motor Co. have different ideas on how the future will unfold. “The traditional business of building cars and selling cars and owning cars will continue,” Carlos Ghosn, chairman BY PREETIKA RANA ZUMA PRESS BY MAYUMI NEGISHI AND PHRED DVORAK An Uber carpooling station located in Beijing. Japan’s SoftBank has been pursuing plans to purchase as much as 14% of the company. of the alliance between Nissan, Renault SA and Mitsubishi Motors Corp., said at a conference last week when asked about ride-hailing versus car ownership. “A lot of people think this is substitution. It’s not: It’s addition.” And within the SoftBank stable, rivalries persist. Uber competes with many of the other companies in Mr. Son’s network. Chinese ride-hailing leader Didi Chuxing Technology Co.—in which SoftBank led a $5.5 billion investment round this year— Didi shares its knowledge with partners around the globe, she said, and declined to comment on SoftBank’s strategy. SoftBank will be pressed to sort out differences among its global network, said Gautam Seshadri, co-founder of ZPX, a Singapore-based financial company that helps match buyers and sellers of private stakes in tech companies. “You’re going to see more of these situations, and SoftBank’s going to be front and center,” Mr. Seshadri said. Mr. Son declined to be in- has its own visions of global domination. Didi has bought stakes in more ride-hailing companies than SoftBank and says it wants its technology to be used by them. Other companies that SoftBank has invested in don’t necessarily welcome that, said a person familiar with those companies’ thinking. “Didi handles over 25 million daily rides, twice as many as what everyone else adds up to,” a Didi spokeswoman said. “We are in the position to develop the most advanced algorithms.” terviewed for this article. The ride-hailing companies that SoftBank has in its portfolio so far include the owner of the popular Ola app in India; Singapore-based Grab Inc., which is strong in Southeast Asian nations such as Indonesia and the Philippines; 99 in Brazil; and Didi in China. One potential area of conflict has been cleared up: Last year Uber swapped its China business for a minority stake in Didi. Others remain to be sorted out. Uber has tried to challenge Grab’s dominance in Southeast Asia. Saint–Gaudens Gold The Man Playing Peacemaker One of The Finest Coins Ever Between Trump and Tech Minted in the United States BY DOUGLAS MACMILLAN Coin shown not actual size FreeShipping! America's Greatest $20 Gold Coin Almost a Full oz. of Pure Gold! Genuine • Legal Tender Coins • Minted 1907–1933 Inspired by Theodore Roosevelt • .96750 oz Gold 1-855-633-2646 www.RepublicCoinLLC.com • Limit of 3 Per Household Republic Coin Inc. • 471 N. Broadway #118 • Jericho, NY 11753 Dates are of our choice. Prices and conditions are subject to change without notice. Changes in spot gold may affect prices.NYS residents add sales tax. Allow 2-4 weeks for delivery. ADVERTISEMENT The Mart To advertise: 800-366-3975 or WSJ.com/classiﬁeds BUSINESS FOR SALE BUSINESS OPPORTUNITIES Solar Panel Protect your CASH & RETIREMENT Accounts before the next market correction. Manufacturer Invest in Physical GOLD/SILVER Midwest solar panel manufacturer for sale, including automated production line and 5,000 completed panels. Includes access to two state of the art "breakthrough" technologies. Safe Haven • Asset Protection • Huge Profit Potential • Private Transaction Shipped directly to you or choose to store at fully insured depository. Interested parties can email firstname.lastname@example.org, or call 419-297-5972 888-635-9889 Reduce Your Tax Liability CONSERVATION EASEMENTS Eligible Deductions Available Now 256.390.2777 1-855-TAX-CUT-0 ! " # $%& ' # ( ) Conservation Easement Advisers, LLC conservationeasements.net BUSINESS OPPORTUNITIES Unleased 51 .6147 Acres FDA APPROVED MEDICAL DEVICE EARN ON EVERY PATIENT TESTED THE ULTIMATE IN PASSIVE INCOME more or less in heart of Haynesville Shale CALL TODAY! (877) 670-1134 PARTNER WITH A PHYSICIAN’S OFFICE For Sale, 3-Acre Minimum email email@example.com for bid package. Bid opening November 22, 2017 TRAVEL Own Your Own Equipment Leasing Company Save Up To 60% For B2B equipment vendors only. Multiply your revenues, profits, income streams and net worth. Completely turnkey. Free qualification analysis. INTERNATIONAL Major Airlines, Corporate Travel Never Fly Coach Again! www.Vikencapital.com/turnkey 509-309-8977 First & Business www.cooktravel.net (800) 435-8776 The pill is for patients with mental illnesses who don’t always take their medication. OFFICE OF SCIENCE AND TECHNOLOGY $1,385 ea. Brilliant Uncirculated As tensions mount between President Donald Trump and his fiercest critics in Silicon Valley, Michael Kratsios has the thorny task of playing peacemaker. Mr. Kratsios, one of the White House’s top technology advisers, is developing a hightech policy agenda that he says will spur innovation in emerging technologies such as drones and artificial intelligence. “We are really working on issues that policy makers have never tackled before,” Mr. Kratsios, the U.S. deputy chief technology officer, told The Wall Street Journal in his first major interview since his appointment in March. “It’s just a question of putting smart people around a table and trying to come up with an innovative approach to regulating” new technologies, he said. To do that, he will need to work closely with the science and tech communities—some of the staunchest critics of Mr. Trump’s policies. Leading scientists and tech executives have abandoned White House advisory councils and complained that the president’s policies in areas like climate change and immigration threaten to reverse years of economic and social progress. It may help that Mr. Kratsios, 31 years old, hails from the world of technology, having spent seven years as an executive at venture-capital firms founded by Silicon Valley luminary Peter Thiel. A former college intern for Sen. Lindsey Graham (R., S.C.), Mr. Kratsios said he hoped to eventually pursue a career in public service. That opportunity came sooner than expected when Mr. Trump won the presidency last November, and Mr. Thiel—one of the tech industry’s most prominent supporters of the Republican—brought Mr. Kratsios with him to New York to work on Mr. Trump’s transition team. Mr. Kratsios now oversees the tech team at the Office of Science and Technology Policy, a department that helps the president shape a range of policies, from rural broadband access to space travel. Tech leaders say they are engaging with Mr. Kratsios’s office cautiously. Brad Smith, Microsoft Corp.’s president and chief legal officer and one of the most outspoken critics U.S. authorities approved the world’s first digital drug, an antipsychotic pill that signals smartphones once it reaches the gut so doctors can track whether patients are taking their medication. Tuesday’s greenlight from the Food and Drug Administration means Japan’s Otsuka Pharmaceutical Co. can implant a chip containing minerals like silicon, magnesium and copper inside tablets of Abilify, which is widely used to treat schizophrenia, bipolar disorder and other mental illnesses. Once swallowed, the chip mixes with stomach acids and sends a heartbeat-like signal to an adhesive patch worn on a patient’s torso. The patch records the dosage and time of ingestion and relays this to a smartphone app for patients to monitor and share with doctors and caretakers. Otsuka spent years testing the drug with Silicon Valley company Proteus Digital Health Inc., which provided the chip technology. The invention is intended for patients with mental illnesses who don’t always take their medication or may be forgetful. Digital drugs may also solve a couple of problems facing pharmaceutical companies and insurers: lower drug sales because of missed doses and higher medical costs treating patients whose conditions worsen. But Otsuka faces basic questions: whether patients and physicians want digital pills, and, if so, how much insurers are prepared to pay. The Japanese drugmaker must convince doctors that digitized Abilify significantly improves patients’ compliance compared with the analog pill and cheaper copies now available. Otsuka also needs to show insurers the extra cost for the high-tech drug creates savings in treatment. Otsuka’s digital pill is competing against its own alternative form of Abilify: A longacting injection that reduces Michael Kratsios is developing a high-tech policy agenda. Vacancies Abound At Science Office The White House has yet to nominate a director for the Office of Science and Technology Policy, a Senate-confirmed position. Michael Kratsios, who will report to the director as deputy, declined to reveal any candidate names or the timing of a nomination. The vacancy of that and several other key OSTP positions, as well as a sluggish pace of hiring, has led to speculation in the science and tech communities that science is a low priority for the administration. The office currently employs about 45 people, Mr. Kratsios said. He plans to grow the office to about 60 employees— less than half the size of the of President Trump’s policies, said he is “committed to working constructively with OSTP and the administration more broadly on issues where we have common ground.” In September, he appeared alongside Ivanka Trump in Virginia to help announce the administration’s plans to bring more coding instruction to U.S. schools. The Trump administration drew opposition from Silicon Valley when it took steps to dismantle the International Entrepreneur Rule, an immigration policy that President Barack Obama’s tech advisers office at its peak under the Obama administration. Mr. Kratsios said he thinks he can make more efficient use of fewer people, as the OSTP tends to rely heavily on the expertise of other federal agencies. The nomination of an OSTP director, in particular, will be closely watched for its implications on U.S. climate-change policy. A government report earlier this month drew a direct line between human activity and the quickening pace of climate change, a finding at odds with Mr. Trump’s moves to reverse policies meant to combat climate change. “The climate is changing, and I don’t think anyone is disputing that,” said Mr. Kratsios, who added that he aims to promote technology to reduce emissions. at the OSTP created to help foreign-born entrepreneurs stay in the U.S. to build startups. A group representing top venture-capital investors has sued the administration, claiming it took illegal steps to prevent the rule from being enacted. Mr. Kratsios declined to comment on the International Entrepreneur Rule, but said he supports a merit-based immigration system “that encourages the world’s best and brightest to come to the U.S. and build great technology companies.” the risk of patients’ missing doses because it is supervised by a doctor. An Otsuka spokeswoman said the injectable is “not appropriate for all patients,” and “so there is a need to have a number of treatment options to choose from.” Insurers will only cover digital Abilify once they see “realworld evidence that this is a better approach,” said Troyen Brennan, the chief medical officer of CVS Health Corp., which administers drug benefits for employers, insurers and some state Medicaid programs in the U.S. Ingestible devices, such as capsules that take pictures inside the body, have been around for years. But this the first time such a device has successfully been paired with a drug. Venture capitalists are betting on digital health care. They poured $4.2 billion into 296 such startups in the U.S. last year, a fourfold increase in investment since 2011, according to Rock Health, a San Francisco-based venture capital fund. Companies that got funding last year were engaged in wearable technologies, digital devices, big data analysis and genomic sequencing. The smallest vial of the long-acting injectable has a list price of $1,478. It is administered once a month and covered by major U.S. insurers. Kabir Nath, who manages Otsuka’s drug business in the U.S., said the company hasn’t decided on a price for digitized Abilify. Proteus, a Redwood City, Calif.-based startup that developed the chip-and-patch system, counts Otsuka, Novartis AG and Oracle Corp. among its investors. Proteus Chief Executive Andrew Thompson said the ingestible chip is safe to consume. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com Tuesday, November 14, 2017 | B5 THE WALL STREET JOURNAL. BUSINESS NEWS Used-Car Prices Are Unexpectedly Strong BY MIKE COLIAS Used-car prices have held up this year, defying predictions. That is bad news for shoppers, but the trend is helping buoy the outlook for auto makers, dealers and rental-car companies. Prices of used cars were expected to plummet starting in 2017 as millions of vehicle leases expired and people who bought following the financial crisis exchanged their old rides for new ones. Softening prices in the preowned market million in the three years ending in 2019, 49% more than the same three-year period that ended in 2016, according to research firm J.D. Power. Thus far, the market is absorbing the extra supply, thanks to tighter inventory controls by various industry players and the loss of as many as a half-million cars to hurricanes in Texas and Florida. Manheim, an auction company tracking prices, said the average used vehicle wholesaled for $13,599 in October, representing a record transaction price that is 8.1% higher than the same month a year ago. That price is adjusted for seasonal factors and partially reflects increased demand for pricier pickups and SUVs, while prices for passenger cars have declined. Black Book, a used-car tracking publication owned by Hearst Business Media Corp., said used-vehicle depreciation has worsened because more cars are hitting the market, but the impact on prices hasn’t been as bad as expected. Black Book vehicle depreciation has grown 1.5% in 2017, far behind the 6% rate initially forecast. Auto makers watch these numbers so they can set resale values for leases that now represent about a third of newcar sales. Used prices also help determine the level of discounts or rebates needed to persuade a person to choose a new car over used. Ford Motor Co. late last year warned falling used-car prices would shave $300 million from full-year operating profit but backed off the Holding Up Used-vehicle prices are rising as demand for trucks and SUVs soars and vendors curb inventory. Percentage change in used-auto prices since Jan. 15, 2015: $13,599 8% 6 4 2 0 $12,505 –2 2015 2016 2017 Note: seasonally adjusted Source: Manheim THE WALL STREET JOURNAL. LAURA BUCKMAN/BLOOMBERG NEWS This year’s trend heartens auto makers, dealers that were bracing for a collapse Tighter inventory controls and demand from buyers replacing storm-damaged cars were key factors. gloomy outlook last month. “We’re not seeing the decline to be as precipitous as we thought” on used vehicles, Ford Motor finance chief Bob Shanks said on a conference call last month. That “should make it a bit easier for us to do better in terms of new vehicle prices.” Demand from buyers replacing hundreds of thousands of storm-damaged vehicles in the wake of Hurricanes Harvey and Irma in September helped boost used-car values. Barclays analyst Brian Johnson said in a research note in early November that it won’t last: “We expect used car pricing…to turn negative in the coming months as hurricane benefits dissipate.” Others say concerns about replacement demand drying up are assuaged by the longer-term Sedans, Compacts Are Potential Deals Used-vehicle prices haven’t dropped this year as many experts predicted, but there still are deals to be had. Shoppers can take advantage of depressed prices on sedans of all sizes, which have fallen out of favor over the past few years as consumers opt for SUVs and pickup trucks. Prices on compact cars like the Ford Focus and Toyota Corolla are about 7% lower than they were two years ago on average, according to auto-auction firm Manheim. Used prices on midsize cars, such as the Honda Accord and Chevrolet Malibu, have fallen about the same amount. “Used buyers looking for value for their money are finding it in compact and midsized cars,” said Anil Goyal, a senior vice president at Manheim. Buyers of used luxury cars can get in on the action, too. Prices on luxury sedans, such as the BMW 3 Series and Audi A6, were down about 12% in October compared with their average two years earlier, according to Manheim. Sport-utility and truck buyers trolling the preowned lot won’t be so lucky. Average prices on SUVs have held steady, Manheim said. Average prices on the Ford F-150, Toyota Tundra and other large pickup trucks are higher than they were a year ago. trend, with price increases being reported in nine of the 10 months of 2017, according to Manheim. This year’s gains more than reverse declines reported over the course of 2016. Inventory-management strategies are driving the longer-term trend. Dealers and rental-car agencies, which sell a substantial portion of the 40 million used cars exchanging hands annually in the U.S., are often relying less on industry auctions to unload gently used cars. Instead, they are reselling them through strategic marketing efforts, such as “certified preowned” vehicles on a dealership lot or a rental-car company’s own retail network. BUFFALO WILD WINGS TYSON FOODS Roark Capital Bids $2.3 Billion for Firm Demand for Beef Drives Up Results Buffalo Wild Wings Inc. has received a takeover bid valued at more than $2.3 billion from private-equity firm Roark Capital Group, according to people familiar with the matter. Roark made an offer of more than $150 a share in recent weeks, one of the people said. Buffalo Wild Wings shares closed Monday at $117.25, giving it a market value of $1.84 billion. The stock jumped 28% to $150 after hours following The Wall Street Journal’s report of the bid. Investment bankers at Barclays PLC are working with Roark, while Goldman Sachs Group Inc. is advising Buffalo Wild Wings, the people said. Minneapolis-based Buffalo Wild Wings has been hurt by rising chicken prices and slump- Strong domestic and foreign demand for beef drove revenue and profit growth at Tyson Foods Inc. Tyson, the largest U.S. meat company by sales, said the pork market also helped results as a price increase offset a volume decline in the company’s fourth quarter. Tyson said it now expects sales to increase 7% in its fiscal 2018, which began in October, to about $41 billion, helped by a recent acquisition and higher chicken prices. That mark is higher than the $40.4 billion analysts polled by Thomson Reuters had expected. The operating margin for beef products—Tyson’s largest segment by revenue—doubled in the fourth quarter as higher prices and sales volume offset increases in live cattle supplies. A decline in feed costs also helped as grain remained cheap. Tyson has been working to invest the profits driven by its beef and pork operations to make changes. Tyson has cut costs at its chicken and prepared-foods segments, resulting in $150 million in total restructuring costs in the quarter. For the fourth quarter, Tyson reported a profit of $394 million, or $1.07 a share, up from $391 million, or $1.03, a year earlier. The number of shares outstanding fell 3.2%, boosting per-share earnings. Excluding items such as the purchase of AdvancePierre Foods and restructuring charges, earnings rose to $1.43 a share. Revenue rose 11% to $10.15 billion. Analysts polled by Thomson Reuters had forecast earnings of $1.38 a share on $9.89 billion in revenue. —Austen Hufford 40M Number of used cars changing hands annually in the U.S. can force auto companies to offer customers richer incentives or extend deeper discounts on new cars, resulting in lower margins on fresh models rolling out of factories. But the predicted price collapse hasn’t happened, and now there is optimism that the swell of vehicles that will hit the used market may not be as problematic for new-car sales as initially feared. The number of lease returns is expected to reach 11.3 LUCAS JACKSON/REUTERS BUSINESS WATCH A Buffalo Wild Wings in New York. The chain’s stock jumped sharply after hours on news of a bid. ing traffic in its restaurants and had been under attack from Marcato Capital Management LP. The activist investor had pushed the company to fran- chise more stores, boost profit margins, increase sales and replace its chief executive. In June, Buffalo Wild Wings shareholders voted in Marcato’s Dividend Changes Pain relief Dividend announcements from November 13. Company Symbol Yld % Amount New/Old Frq founder and two of its nominees to the board. Chief Executive Sally Smith announced she would retire by year-end. —Dana Mattioli Payable / Record that’s not in a pill! Increased Assurant Four Corners Property Tr United Bankshares WV Weyerhaeuser AIZ FCPT UBSI WY 2.3 4.3 3.9 3.6 .56 /.53 .275 /.2425 .34 /.33 .32 /.31 Q Q Q Q Dec18 /Nov27 Jan12 /Dec29 Jan02 /Dec08 Dec15 /Dec01 3.9 3.9 3.9 7.6 10.7 10.7 10.9 18.7 18.7 18.7 18.5 18.5 18.5 5.6 4.8 5.3 4.3 5.0 7.0 7.8 7.3 10.7 8.0 9.9 6.8 .034 .034 .034 .05 .1194 .122 .0997 .2365 .2365 .2365 .2301 .2301 .2301 .069 .035 .0525 .044 .05 .096 .252 .4225 .1633 .05641 .1077 .075 M M M M M M M M M M M M M M M M M M M Q Q Q M M M Nov30 /Nov22 Dec29 /Dec21 Jan31 /Jan24 Nov30 /Nov21 Nov30 /Nov20 Nov30 /Nov20 Nov30 /Nov20 Jan31 /Jan16 Feb28 /Feb15 Mar30 /Mar15 Jan31 /Jan16 Feb28 /Feb15 Mar30 /Mar15 Nov30 /Nov20 Nov30 /Nov20 Nov30 /Nov20 Nov30 /Nov20 Nov30 /Nov20 Nov30 /Nov20 Nov17 /Nov14 Nov17 /Nov14 Jan02 /Dec13 Jan02 /Dec13 Jan02 /Dec13 Jan02 /Dec13 Wireless 3-in-1 Pain Relief Device • Blocks pain naturally • Strengthens muscles • Relaxes and relieves Funds and investment companies Boulder Growth & Income Boulder Growth & Income Boulder Growth & Income CBREClarionGlblRlEstIncm Clough Glbl Eqty Fd Clough Global Dividend Clough Global Opp Fd Cornerstone Strategic Cornerstone Strategic Cornerstone Strategic Cornerstone TR Fd Cornerstone TR Fd Cornerstone TR Fd Deutsche Hi Incm Opps Fd Deutsche MultiMkt Income Deutsche Mun Income Tr Deutsche Strat Income Tr Deutsche Strat Mun Incm THL Credit Senior Loan Fd VanEck Vctr Hi Incm Infra VanEck Vectors Hi Inc MLP Wells Fargo Gl Div Opp Wells Fargo Incm Opps Fd Wells Fargo Multi-Sector Wells Fargo Utilities Fd BIF BIF BIF IGR GLQ GLV GLO CLM CLM CLM CRF CRF CRF DHG KMM KTF KST KSM TSLF YMLI YMLP EOD EAD ERC ERH FIND YOUR QUIE QUIET PLACE ™ Transcendent escape. Unrivaled massage. This holiday season, give the gift of peace and relaxation. USE WITH YOUR MOBILE DEVICE 0% FINANCING FOR 48 MONTHS1 1:12 AMDA FREE WHITE GLOVE DELIVERY 2 THREE DRUG-FREE THERAPIES IN ONE POWERFUL DEVICE Wireless – Control with included remote or mobile app Wireless 3-in-1 Pain Relief Device features more choices to treat your pain: Stocks Amedica T H I S H O L I D AY S E A S O N Made in Japan /Nov10 Foreign Barclays ADR Pfd Ser 5 CAE Inc Maiden Hldgs 6.7% Pfd. D Maiden Hldgs Pfd. A Maiden Hldgs Pfd. C Quarterhill RenaissanceRe Hldgs 6.08% RenaissanceRe Pfd. E Triton International Tsakos Energy Pfd D Tsakos Engy Nav Pfd E TNPpE 7.6 1.6 6.8 8.1 7.0 2.3 5.9 5.3 4.3 8.6 9.0 .50781 .07085 .41875 .51563 .44531 .00984 .38 .33594 .45 .54688 .57813 RLI 1.4 1.75 BCSpD CAE MHpD MHpA MHpC QTRH RNRpC RNRpE TRTN TNPpD Q Q Q Q Q Q Q Q Q Q Q Dec15 /Dec01 Dec29 /Dec15 Dec15 /Dec01 Dec15 /Dec01 Dec15 /Dec01 Jan05 /Dec15 Dec01 /Nov30 Dec01 /Nov30 Dec22 /Dec01 Nov28 /Nov22 Nov28 /Nov22 TENS THERAPY TENS is Transcutaneous Electrical Nerve Stimulation which uses massage-like impulses sent through the nerves to modify pain perception. EMS THERAPY EMS is Electronic Muscle Stimulation which contracts muscles, aiding in strength training, recovery, postexercise and enhancing blood circulation. MASSAGE THERAPY The massage setting provides low level muscle vibration to loosen tight muscles. Its main function is to mimic manual massage to promote relaxation and reduce muscle tension. 888-727-2150 | dreamwave.com/quiet Special RLI Corp 1 Dec27 /Nov30 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: spin-off. Available at Select CVS Pharmacy® Stores www.accurelief.com Call Toll Free: 1-800-526-8051 2 0% interest financing for 60 months. Subject to credit approval. Free delivery to any address in the 48 contiguous United States. Includes set up and removal of packing material. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. B6 | Tuesday, November 14, 2017 MARKETS DIGEST EQUITIES S&P 500 Index Dow Jones Industrial Average Last Year ago 23439.70 s 17.49, or 0.07% High, low, open and close for each trading day of the past three months. Trailing P/E ratio 21.18 20.61 P/E estimate * 19.22 17.66 Dividend yield 2.21 2.48 All-time high 23563.36, 11/08/17 Nasdaq Composite Index Last 2584.84 s 2.54, or 0.10% High, low, open and close for each trading day of the past three months. Year ago Trailing P/E ratio 24.42 23.99 P/E estimate * 19.37 18.05 Dividend yield 1.92 2.17 All-time high: 2594.38, 11/08/17 Last Year ago 6757.60 s 6.66, or 0.10% High, low, open and close for each trading day of the past three months. Trailing P/E ratio * 26.13 23.37 P/E estimate * 21.32 18.87 Dividend yield 1.04 1.24 All-time high: 6789.12, 11/08/17 Current divisor 0.14523396877348 23500 2580 6750 23000 2550 6650 22500 2520 6550 22000 2490 6450 21500 2460 6350 Session high t DOWN Session open t Close UP Close Open Session low 65-day moving average 65-day moving average 65-day moving average 6250 2430 21000 Bars measure the point change from session's open Sept. Oct. 6150 2400 20500 Aug. Aug. Nov. Sept. Oct. Aug. Nov. Sept. Oct. Nov. Weekly P/E data based on as-reported earnings from Birinyi Associates Inc. Major U.S. Stock-Market Indexes Volume, Advancers, Decliners 17.49 0.07 23563.36 18867.93 24.2 18.6 9.9 9522.34 9458.82 9518.84 17.48 0.18 10038.13 8749.08 8.6 5.3 1.6 Most-active issues in late trading 766.55 757.62 765.39 8.44 765.39 625.44 22.4 16.0 9.2 26755.56 26616.51 26727.72 680.50 675.35 679.94 23.64 1.00 0.09 26830.60 22488.92 691.56 573.56 18.8 18.5 14.8 13.0 8.0 8.0 6.66 7.11 0.10 29.5 34.3 25.5 29.9 13.0 14.4 Latest Close Low Net chg % chg High 52-Week Low % chg % chg 3-yr. ann. YTD Dow Jones 23461.68 23343.34 23439.70 Transportation Avg Utility Average Total Stock Market Barron's 400 Trading Diary Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic trading services, securities dealers and regional exchanges. Minimum share price of $2 and minimum after-hours volume of 5,000 shares. High Industrial Average Late Trading Nasdaq Stock Market Nasdaq Composite 6766.30 Nasdaq 100 6325.18 Standard & Poor's 500 Index 6723.43 6285.97 2587.66 6757.60 6316.18 2574.48 2584.84 2.54 MidCap 400 SmallCap 600 1830.28 896.30 1816.89 889.42 1828.93 895.04 3.18 1.27 Other Indexes Russell 2000 1476.68 1466.09 1475.07 -0.21 1.12 0.15 0.11 6789.12 6345.81 0.10 2594.38 0.17 1843.36 918.72 1512.09 0.14 5218.40 4702.04 2164.20 19.4 15.5 1588.12 793.04 15.2 12.9 10.1 6.8 8.5 9.6 1298.60 13.6 8.7 7.9 8.2 Company Last Net chg Synergy Pharmaceuticals SGYP 17,692.3 2.40 SPY SPDR S&P 500 7,533.7 258.05 PFE Pfizer 5,705.2 35.35 After Hours % chg High Low -0.04 -1.64 2.90 -0.28 -0.11 258.35 257.55 2.40 0.05 0.14 36.14 35.26 Verizon Communications VZ 3,585.6 44.75 … unch. 49.05 44.68 iShares MSCI Emg Markets EEM 2,650.3 46.21 0.02 0.04 46.23 46.12 Ford Motor F 2,529.1 12.16 … unch. 12.18 12.10 Goldcorp GG 2,428.8 13.26 … unch. 13.33 13.26 Flex Ltd FLEX 2,411.4 18.27 … unch. 18.37 18.27 Percentage gainers… BWLD 609.0 150.20 32.95 28.10 153.00 117.25 Regeneron Pharmaceuticals REGN 233.6 469.56 75.94 19.29 469.56 393.46 Merck MRK 604.4 64.33 9.23 16.75 64.33 54.99 Johnson Controls Intl JCI 255.5 41.86 5.86 16.28 41.86 36.00 146.6 3.25 0.45 16.07 4.45 2.85 Buffalo Wild Wings -0.01 Volume (000) Symbol NYSE NYSE Amer. -5.78 -0.05 15.3 11.4 4.3 537.99 535.50 537.20 -0.79 -0.15 545.98 490.08 9.6 6.1 2.7 NYSE Arca Biotech 4115.04 4075.48 4082.93 -5.13 -0.13 4304.77 3075.02 17.9 32.8 7.0 NYSE Arca Pharma -0.07 560.52 463.78 9.1 10.6 -0.2 ...And losers 102.31 83.90 15.1 7.0 10.5 Cabot Oil Gas COG 80.8 24.35 -4.71 -16.22 29.11 24.35 96.72 73.03 2.0 2.0 6.4 RSP Permian RSPP 82.5 31.65 -5.49 -14.79 37.37 31.65 192.66 117.79 -13.6 -24.8 -17.0 Myomo MYO 10.9 5.45 -0.84 -13.35 6.25 5.25 44.1 -18.1 Devon Energy DVN 1,276.9 34.48 -5.17 -13.03 39.87 34.48 Energen Corp EGN 24.6 49.15 -6.98 -12.43 56.52 49.15 NYSE Composite 12328.16 12272.21 12316.82 Value Line 533.55 529.97 532.72 -0.38 KBW Bank 98.37 96.79 0.64 PHLX§ Gold/Silver 98.24 81.02 80.28 -0.19 PHLX§ Oil Service 80.42 140.12 137.87 138.12 1308.13 12.18 1296.42 11.00 1306.58 11.50 PHLX§ Semiconductor CBOE Volatility 12430.52 10679.77 0.66 -0.23 -2.85 -2.02 0.27 3.52 0.21 1.86 Philadelphia Stock Exchange Region/Country Index Close 26.9 -5.9 Percentage Gainers... Latest % chg Net chg 2950.73 383.83 257.75 The Global Dow DJ Global Index DJ Global ex U.S. –12.66 –1.06 –1.67 386.13 388.70 4007.57 5341.63 13074.42 1418.48 22437.64 545.43 1148.79 10049.90 578.93 9162.74 7415.18 EMEA Eurozone Belgium France Germany Israel Italy Netherlands Russia Spain Sweden Switzerland U.K. Stoxx Europe 600 Euro Stoxx Bel-20 CAC 40 DAX Tel Aviv FTSE MIB AEX RTS Index IBEX 35 SX All Share Swiss Market FTSE 100 Asia-Pacific Australia China Hong Kong India Japan Singapore South Korea Taiwan S&P/ASX 200 6021.80 Shanghai Composite 3447.84 Hang Seng 29182.18 S&P BSE Sensex 33033.56 Nikkei Stock Avg 22380.99 Straits Times 3419.13 Kospi 2530.35 Weighted 10683.92 YTD % chg 16.6 17.7 20.5 –0.43 –0.27 –0.64 0.05 0.29 0.43 309.53 –0.08 –13.00 –0.05 –25.87 –43.76 –1.07 DJ Americas 620.91 Sao Paulo Bovespa 72475.17 S&P/TSX Comp 16026.26 S&P/BMV IPC 48002.43 Santiago IPSA 4047.83 Americas Brazil Canada Mexico Chile 832.08 57.0 9.14 -20.6 Sources: SIX Financial Information; WSJ Market Data Group International Stock Indexes World 1321.13 16.04 TRACON Pharmaceuticals TCON –2.56 –2.20 –18.69 –39.09 –53.05 –1.36 –123.15 –1.89 –7.95 –42.80 –3.15 28.58 –17.81 –0.66 –0.56 –0.46 –0.73 –0.40 –0.10 –0.55 –0.35 –0.69 –0.42 –0.54 0.31 –0.24 –0.13 –7.60 0.44 15.16 0.21 61.26 –281.00 –0.84 –300.43 –1.32 –0.03 –0.97 –12.60 –0.50 –48.75 –0.45 14.9 20.3 4.8 5.2 25.6 6.8 11.0 11.1 9.9 13.9 –3.6 16.7 12.9 –0.3 7.5 8.3 11.5 3.8 6.3 11.1 32.6 24.1 17.1 18.7 24.9 15.5 Company Symbol Roku Cl A Zymeworks Mattel Inc Helios Matheson Analy Birks Group ROKU Yulong Eco-Materials Ever-Glory Intl Group GTx Nektar Therapeutics Nature's Sunshine YECO Asure Software Galmed Pharmaceuticals Ophthotech Capricor Therapeutics Secoo Holding ADR ASUR MAT HMNY BGI EVK GTXI NKTR NATR GLMD OPHT CAPR SECO High 52-Week Low % chg Symbol General Electric Argos Therapeutics Bank of America Advanced Micro Devices Roku Cl A GE Finl Select Sector SPDR iShares MSCI Emg Markets Mattel Inc JD.com ADR SPDR S&P 500 XLF 28.45 24.75 20.66 20.06 19.03 47.49 15.75 14.25 6.25 32.48 12.71 38.86 2.20 2.69 1.00 ... ... -44.9 111.9 87.7 Calithera Biosciences Diana Containerships Ideal Power TDH Holdings Immunomedics CALA 3.59 2.50 11.81 37.10 12.90 0.53 0.35 1.51 4.60 1.55 17.32 16.28 14.66 14.15 13.66 9.60 0.50 3.00 1.95 12.96 2.73 41.34 11.41 15.35 8.40 -59.0 8.7 45.8 157.5 -10.7 KBS Fashion Group Determine Syndax Pharmaceuticals Fluidigm Quantum Corp KBSF 13.24 7.60 3.20 2.75 8.90 1.52 0.82 0.34 0.28 0.88 12.97 12.09 11.89 11.34 10.97 17.27 9.59 40.34 4.25 12.70 75.8 108.8 -91.1 -11.6 ... China TechFaith ADR Celyad ADR Endocyte Infinity Pharmaceuticals Aptevo Therapeutics CNTF 7.38 3.04 2.24 0.63 6.61 Volume % chg from Latest Session (000) 65-day avg Close % chg 337.8 1802.5 -15.1 -8.8 538.0 50,062 49,589 48,507 43,169 42,588 -3.4 3.3 370.3 179.8 -33.6 JD SPY 19.02 0.22 26.40 11.09 42.71 -7.17 24.27 -0.41 -1.51 28.45 New car loan Benchmark Yields Treasury yield curve andtoRates Yield maturity of current bills, 26.12 0.15 46.19 -0.22 17.64 20.66 41.34 3.45 258.33 0.09 26.93 21.79 46.87 33.94 32.48 12.71 48.99 23.38 259.35 215.72 4.00% t Prime rate 3.50 3.00 t 2.50 2.00 D J F MAM J J A S O N 2017 1.89% 800-288-3425 TrustCo Bank Orlando, FL 2.37% 407-422-7129 Lake City Bank Warsaw, IN 2.49% 888-522-2265 Broadway National Bank San Antonio, TX 2.50% 210-283-6500 Cambridge Savings Bank 2.59% Cambridge, MA 888-418-5626 Monday One year ago t New car loan Think Mutual Bank Rochester, MN 3.00 1 3 6 month(s) 1 2 3 5 710 years maturity 2.25 0 1.50 –5 0.75 –10 0.00 –15 s WSJ Dollar index 30 Euro s Yen Interest rate Federal-funds rate target 1.00-1.25 1.00-1.25 Prime rate* 4.25 4.25 Libor, 3-month 1.40 1.42 Money market, annual yield 0.33 0.32 Five-year CD, annual yield 1.47 1.49 30-year mortgage, fixed† 3.90 3.92 15-year mortgage, fixed† 3.23 3.30 Jumbo mortgages, $424,100-plus† 4.29 4.28 Five-year adj mortgage (ARM)† 3.51 3.45 New-car loan, 48-month 3.01 3.01 HELOC, $30,000 5.03 4.47 3-yr chg 52-Week Range (%) Low 0 2 4 6 8 High (pct pts) 0.25 l l 3.50 0.91 l 0.26 l 1.19 l l 3.73 l 2.99 l 4.21 l 3.20 l 2.85 l 4.47 1.25 4.25 1.42 0.36 1.49 4.33 3.50 4.88 4.03 3.36 5.30 1.00 1.00 1.18 -0.11 -0.06 -0.14 0.06 ... -0.13 -0.23 0.11 Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest banks.† Excludes closing costs. Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Corporate Borrowing Rates and Yields Bond total return index Close Yield (%) Last Week ago 52-Week High Low Total Return (%) 52-wk 3-yr 1456.180 2.186 2.102 2.237 1.818 1.410 1.929 10-yr Treasury, Ryan ALM 1725.677 DJ Corporate 376.787 Aggregate, Barclays Capital 1934.940 High Yield 100, Merrill Lynch n.a. Fixed-Rate MBS, Barclays 1983.260 Muni Master, Merrill n.a. 2.400 3.173 2.680 n.a. 2.910 n.a. 2.318 3.063 2.580 5.213 2.820 1.962 2.609 3.390 2.790 n.a. 3.120 n.a. 2.058 2.879 2.380 n.a. 2.650 n.a. 0.686 4.305 2.019 n.a. 1.161 n.a. 796.274 5.645 5.547 6.290 5.279 Treasury, Ryan ALM EMBI Global, J.P. Morgan WSJ .COM 4.96 1.87 8.50 4.46 4.28 -1.19 -0.36 -1.61 -0.78 -0.72 -19.35 -16.14 -15.92 -14.89 -14.40 18.00 3.93 15.70 8.69 9.20 1.41 1.58 6.31 2.52 4.22 -13.0 -6.5 -15.8 -26.4 -36.5 2.30 45.97 4.60 2.09 2.64 -0.38 -7.52 -0.73 -0.32 -0.38 -14.18 -14.05 -13.70 -13.28 -12.58 3.60 1.45 64.75 16.73 6.55 1.17 3.84 0.93 3.85 1.15 7.0 149.8 55.9 57.1 14.3 QTM INFI APVO Ranked by change from 65-day average* Symbol Kayne Anderson Acqn Cl A Vantage Energy Acqn Cl A FT ETF EqCompass Tactical WisdomTree US Total Earn Joint Country/currency KAAC VEAC TERM EXT JYNT Volume % chg from Latest Session (000) 65-day avg Close % chg 52-Week High Low 247 310 468 505 17,376 3426 3151 1872 1754 1247 30.84 8.57 50.67 18.24 37.10 -0.09 24.75 0.06 -1.19 14.15 31.21 14.25 52.92 20.26 41.34 676 797 91 63 204 1078 1077 959 869 781 9.70 9.70 21.26 30.60 5.90 -0.10 -0.41 0.24 -0.08 7.08 9.79 9.68 9.95 9.68 21.43 19.67 30.74 25.41 5.99 1.96 US$vs, YTDchg Mon in US$ per US$ (%) Americas Argentina peso .0572 17.4950 Brazil real .3049 3.2794 Canada dollar .7853 1.2734 Chile peso .001589 629.30 Colombia peso .0003324 3008.00 Ecuador US dollar 1 1 Mexico peso .0523 19.1284 Peru new sol .3084 3.243 Uruguay peso .03425 29.2000 Venezuela b. fuerte .100150 9.9851 1.712 3.751 2.334 n.a. 2.040 n.a. 10.333 5.611 Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Australian dollar .7624 1.3116 China yuan .1504 6.6488 Hong Kong dollar .1282 7.8009 India rupee .01528 65.442 Indonesia rupiah .0000738 13558 Japan yen .008801 113.62 Kazakhstan tenge .003004 332.92 Macau pataca .1246 8.0287 Malaysia ringgit .2386 4.1915 New Zealand dollar .6902 1.4489 Pakistan rupee .00949 105.350 Philippines peso .0195 51.192 Singapore dollar .7343 1.3619 South Korea won .0008929 1119.89 Sri Lanka rupee .0065087 153.64 Taiwan dollar .03312 30.189 21.26 6.25 49.71 17.27 11.41 10.2 0.7 –5.3 –6.0 0.2 unch –7.7 –3.3 –0.5 –0.1 Track the Markets Compare the performance of selected global stock indexes, bond ETFs, currencies and commodities at WSJ.com/TrackTheMarkets –5.5 –4.3 0.6 –3.7 0.2 –2.9 –0.2 1.4 –6.6 0.3 0.9 3.2 –5.9 –7.3 3.5 –7.0 US$vs, YTDchg Mon in US$ per US$ (%) Country/currency .03025 33.060 –7.7 .00004404 22709 –0.3 Thailand baht Vietnam dong Europe Czech Rep. koruna Denmark krone Euro area euro Hungary forint Iceland krona Norway krone Poland zloty Russia ruble Sweden krona Switzerland franc Turkey lira Ukraine hryvnia UK pound .04563 21.914 –14.7 .1568 6.3772 –9.8 1.1669 .8570 –9.8 .003742 267.24 –9.2 .009645 103.68 –8.2 .1225 8.1656 –5.5 .2753 3.6321 –13.3 .01684 59.397 –3.1 .1193 8.3831 –7.9 1.0036 .9964 –2.2 .2584 3.8706 9.9 .0378 26.4873 –2.2 1.3115 .7625 –5.9 Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand 2.6452 .3780 0.2 .0567 17.6295 –2.8 .2822 3.5433 –7.9 3.3058 .3025 –1.0 2.5974 .3850 0.01 .2611 3.830 5.2 .2667 3.7502 –0.01 .0691 14.4764 5.7 Close Net Chg % Chg YTD%Chg WSJ Dollar Index 87.73 0.15 0.17 –5.61 Sources: Tullett Prebon, WSJ Market Data Group Commodities COMMODITIES Monday 52-Week Pricing trends on someClose raw materials, or commodities Net chg % Chg High Low DJ Commodity Get real-time U.S. stock quotes and track most-active stocks, new highs/lows and mutual funds. Plus, deeper money-flows data and email delivery of key stock-market data. Available free at WSJMarkets.com 272.2 -99.9 -65.3 ... 270.4 Asia-Pacific 2017 Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Yield/Rate (%) Last (l)Week ago 2.90 1.56 1.45 6.02 2.51 U.S.-dollar foreign-exchange rates in late New York trading 10% 5 20.05 -28.72 -28.40 1131015.06 4.98 -23.53 31.75 -21.30 14.48 -19.35 Currencies Yen, euro vs. dollar; dollar vs. major U.S. trading partners 3.75% 3.01% -4.73 -3.09 -0.48 -4.30 -2.40 FLDM ECYT 52-Week Low % chg 11.73 7.79 1.56 15.89 10.00 SNDX CYAD High * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least 5,000 shares =Has traded fewer than 65 days Forex Race notes and bonds Bankrate.com avg†: NYSE Arca * Primary market NYSE, NYSE American NYSE Arca only. †(TRIN) A comparison of the number of advancing and declining issues with the volume of shares rising and falling. An Arms of less than 1 indicates buying demand; above 1 indicates selling pressure. Latest Session Close Net chg % chg DTRM WisdomTree Emg Mkts xSOEXSOE ZYME Zymeworks FIXD First Tr TCW Opportun SOYB Teucrium Soybean Fund NKTR Nektar Therapeutics 18.75 0.13 19.40 6.61 15.75 * Volumes of 100,000 shares or more are rounded to the nearest thousand t A consumer rate against its benchmark over the past year IMMU 32.38 5.68 27.98 15.65 47.49 s Selected rates PETZ Company CREDIT MARKETS & CURRENCIES U.S. consumer rates IPWR 52-Week High Low Sources: SIX Financial Information; WSJ Market Data Group Consumer Rates and Returns to Investor DCIX Volume Movers 253,928 67,332 BAC 54,741 AMD 53,153 ROKU 52,758 MAT Symbol 9.46 1.70 3.02 2.06 0.43 ARGS EEM Company 42.71 8.57 17.64 12.33 2.69 Most Active Stocks Company Nasdaq Total volume*1,937,948,998 188,203,197 Adv. volume*1,049,800,710 89,473,060 Decl. volume* 859,122,991 97,731,889 Issues traded 3,080 1,315 Advances 1,456 579 Declines 1,487 698 Unchanged 137 38 New highs 74 52 New lows 85 30 Closing tick 226 35 Closing Arms† 0.80 0.91 Block trades* 7,740 1,038 Percentage Losers Latest Session Close Net chg % chg ZYME Total volume* 790,713,240 13,641,994 Adv. volume* 331,023,433 5,310,552 Decl. volume* 442,918,108 7,896,580 Issues traded 3,078 328 Advances 1,325 129 Declines 1,638 173 Unchanged 115 26 New highs 100 4 New lows 102 11 Closing tick 51 20 Closing Arms† 1.18 0.77 Block trades* 6,404 114 TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz. 616.58 0.64 191.45 56.76 3.167 1277.30 -0.20 0.02 -0.046 4.90 0.10 616.58 532.01 -0.10 195.14 57.35 0.04 3.93 -1.43 0.39 1346.00 166.50 42.53 2.56 1127.80 % Chg 15.79 YTD % chg 8.70 6.21 -0.55 5.66 31.02 15.21 -14.96 4.59 11.07 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | B7 COMMODITIES Futures Contracts Open Contract High hilo Low Settle Open interest Chg Contract Open High hi lo Low Settle Chg Copper-High (CMX)-25,000 lbs.; $ per lb. 3.0860 3.1260 3.0860 3.1115 0.0420 Nov Dec 3.0750 3.1365 3.0680 3.1165 0.0405 Gold (CMX)-100 troy oz.; $ per troy oz. Nov 1277.00 1277.00 1277.00 1277.30 4.90 Dec 1275.30 1279.90 1274.40 1278.90 4.70 Feb'18 1279.20 1284.20 1278.90 1283.30 4.80 April 1283.00 1288.20 1283.00 1287.60 4.80 June 1289.60 1292.70 1288.70 1291.90 4.80 Dec 1301.50 1305.40 1301.50 1304.90 5.00 Palladium (NYM) - 50 troy oz.; $ per troy oz. 993.15 1001.45 986.95 989.70 –3.40 Dec March'18 990.65 993.75 982.00 984.05 –2.85 Platinum (NYM)-50 troy oz.; $ per troy oz. 928.30 928.70 928.30 932.40 3.50 Nov Jan'18 930.70 938.40 927.00 935.60 3.50 Silver (CMX)-5,000 troy oz.; $ per troy oz. 16.840 17.010 16.840 17.023 0.179 Nov Dec 16.860 17.070 16.820 17.047 0.176 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. 56.90 57.15 56.30 56.76 0.02 Dec Jan'18 57.16 57.37 56.52 56.97 –0.01 Feb 57.34 57.52 56.70 57.13 –0.03 March 57.48 57.65 56.85 57.27 –0.01 June 57.30 57.50 56.79 57.18 0.05 Dec 55.62 55.79 55.31 55.60 0.15 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 1.9361 1.9441 1.9209 1.9321 –.0028 Dec Jan'18 1.9380 1.9469 1.9242 1.9353 –.0024 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. 1.8284 1.8326 1.7854 1.7929 –.0195 Dec Jan'18 1.8110 1.8122 1.7744 1.7832 –.0129 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. 3.200 3.231 3.127 3.167 –.046 Dec Jan'18 3.291 3.321 3.225 3.262 –.044 Feb 3.298 3.320 3.229 3.265 –.043 March 3.257 3.269 3.188 3.222 –.040 April 2.976 3.000 2.956 2.974 –.013 May 2.955 2.971 2.928 2.950 –.011 Open interest 557 122,044 71 300,989 157,003 20,174 19,596 11,104 28,621 7,144 4 70,271 3 114,696 364,546 517,089 176,319 271,356 227,770 268,008 96,913 109,537 107,071 144,619 146,838 277,692 97,210 181,128 122,276 91,013 Agriculture Futures Corn (CBT)-5,000 bu.; cents per bu. Dec 343.50 344.00 341.50 342.25 March'18 356.00 356.75 354.25 355.00 Oats (CBT)-5,000 bu.; cents per bu. Dec 273.00 275.50 272.00 273.50 March'18 281.00 283.75 278.25 283.00 Soybeans (CBT)-5,000 bu.; cents per bu. Nov 977.25 978.00 963.25 963.50 Jan'18 987.00 990.25 973.75 974.25 Soybean Meal (CBT)-100 tons; $ per ton. Dec 314.50 316.50 311.10 311.30 Jan'18 316.80 318.50 313.30 313.40 Soybean Oil (CBT)-60,000 lbs.; cents per lb. Dec 34.82 34.83 34.28 34.33 Jan'18 34.96 34.97 34.43 34.48 Rough Rice (CBT)-2,000 cwt.; $ per cwt. Nov 1112.00 1115.00 1112.00 1112.00 Jan'18 1144.50 1147.50 1131.00 1136.00 Wheat (CBT)-5,000 bu.; cents per bu. Dec 432.00 432.00 422.25 424.25 March'18 449.00 449.00 440.25 443.25 Wheat (KC)-5,000 bu.; cents per bu. Dec 433.00 433.00 423.75 427.50 March'18 449.75 450.00 439.75 444.25 Wheat (MPLS)-5,000 bu.; cents per bu. Dec 646.25 646.50 630.00 633.25 March'18 657.00 657.75 642.50 647.00 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Nov 158.175 159.375 157.550 158.700 Jan'18 156.475 157.550 155.375 156.975 Cattle-Live (CME)-40,000 lbs.; cents per lb. Dec 120.000 121.725 119.450 120.575 Feb'18 126.000 127.675 125.225 126.400 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Dec 62.575 62.925 61.925 62.300 Feb'18 70.250 70.675 69.900 70.300 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Nov 470.90 472.40 s 466.60 467.40 Jan'18 460.80 461.60 451.70 456.30 Nov Dec –1.25 603,364 –1.75 517,930 1.50 3.00 3,934 3,513 –13.75 1,088 –12.75 322,252 –3.20 91,804 –3.20 106,565 –.48 118,315 –.48 124,702 –4.50 –6.00 17 9,548 –7.25 183,686 –5.75 199,423 –5.75 102,729 –5.75 128,701 –14.25 –12.25 31,737 29,107 .225 –.200 5,260 29,285 … 81,209 –.350 139,401 –.175 .050 64,245 86,356 –3.60 –3.30 219 5,556 Cash Prices | WSJ.com/commodities Monday, November 13, 2017 These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— separate from the futures price on an exchange, which reflects what the commodity might be worth in future months. Monday Monday 16.9250 12869 (U.S.$ equivalent) Coins,wholesale $1,000 face-a 0.9870 1.0692 3.120 3.070 3.240 2.760 2.880 2.500 3.020 59.850 12.100 Propane,tet,Mont Belvieu-g Butane,normal,Mont Belvieu-g NaturalGas,HenryHub-i NaturalGas,TranscoZone3-i NaturalGas,TranscoZone6NY-i NaturalGas,PanhandleEast-i NaturalGas,Opal-i NaturalGas,MarcellusNE PA-i NaturalGas,HaynesvilleN.LA-i Coal,C.Aplc.,12500Btu,1.2SO2-r,w Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w Other metals LBMA Platinum Price PM *937.0 Platinum,Engelhard industrial 936.0 Platinum,Engelhard fabricated 1036.0 Palladium,Engelhard industrial 997.0 Palladium,Engelhard fabricated 1097.0 Aluminum, LME, $ per metric ton *2090.0 Copper,Comex spot 3.1115 Iron Ore, 62% Fe CFR China-s 61.9 Shredded Scrap, US Midwest-s,w 276 Steel, HRC USA, FOB Midwest Mill-s 610 Fibers and Textiles Metals Gold, per troy oz 1281.82 1377.96 1277.95 1418.53 *1284.45 *1284.30 1330.06 1342.85 1342.85 1549.97 1256.58 1342.85 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA Gold Price AM LBMA Gold Price PM Krugerrand,wholesale-e Maple Leaf-e American Eagle-e Mexican peso-e Austria crown-e Austria phil-e Silver, troy oz. 17.0000 20.4000 17.0100 21.2630 £12.9300 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price Burlap,10-oz,40-inch NY yd-n,w Cotton,1 1/16 std lw-mdMphs-u Cotlook 'A' Index-t Hides,hvy native steers piece fob-u Wool,64s,staple,Terr del-u,w 0.6150 0.6813 *79.35 65.500 n.a. Grains and Feeds Barley,top-quality Mnpls-u Bran,wheat middlings, KC-u Corn,No. 2 yellow,Cent IL-bp,u Corn gluten feed,Midwest-u,w Corn gluten meal,Midwest-u,w Cottonseed meal-u,w Hominy feed,Cent IL-u,w Meat-bonemeal,50% pro Mnpls-u,w Oats,No.2 milling,Mnpls-u Rice, 5% Broken White, Thailand-l,w Rice, Long Grain Milled, No. 2 AR-u,w Sorghum,(Milo) No.2 Gulf-u n.a. 86 n.a. 91.0 492.9 225 88 220 3.0600 368.00 24.00 7.5838 Monday 307.30 n.a. 7.7075 4.3500 3.8500 5.2763 SoybeanMeal,Cent IL,rail,ton48%-u Soybeans,No.1 yllw IL-bp,u Wheat,Spring14%-pro Mnpls-u Wheat,No.2 soft red,St.Louis-bp,u Wheat - Hard - KC (USDA) $ per bu-u Wheat,No.1soft white,Portld,OR-u Food Beef,carcass equiv. index choice 1-3,600-900 lbs.-u select 1-3,600-900 lbs.-u Broilers, National comp wghtd-u,w Butter,AA Chicago Cheddar cheese,bbl,Chicago Cheddar cheese,blk,Chicago Milk,Nonfat dry,Chicago lb. Cocoa,Ivory Coast-w Coffee,Brazilian,Comp Coffee,Colombian, NY Eggs,large white,Chicago-u Flour,hard winter KC Hams,17-20 lbs,Mid-US fob-u Hogs,Iowa-So. Minnesota-u Pork bellies,12-14 lb MidUS-u Pork loins,13-19 lb MidUS-u Steers,Tex.-Okla. Choice-u Steers,feeder,Okla. City-u,w 192.93 175.51 0.8612 2.2500 170.00 171.25 73.50 n.a. 1.2642 1.4513 1.2750 15.60 0.82 65.57 1.2826 0.8947 n.a. 172.13 Fats and Oils 34.8500 0.2500 n.a. 0.3346 0.2700 n.a. Corn oil,crude wet/dry mill-u,w Grease,choice white,Chicago-h Lard,Chicago-u Soybean oil,crude;Centl IL-u Tallow,bleach;Chicago-h Tallow,edible,Chicago-u KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence; L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 11/10 Source: WSJ Market Data Group November 13, 2017 Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a guide to general levels but don’t always represent actual transactions. Week Latest ago Inflation Chg From (%) Aug. '17 Sept. '16 U.S. consumer price index 246.819 252.941 All items Core 0.53 0.19 2.2 1.7 Britain Australia Latest Week ago 4.25 4.25 4.25 3.50 3.20 3.20 3.20 2.70 1.475 1.475 1.475 1.475 Policy Rates Euro zone Switzerland 0.00 0.50 0.00 0.50 0.00 0.50 0.50 1.50 0.50 1.50 0.25 1.50 1.18 U.S. 1.21 1.38 0.00 0.50 Discount 1.75 1.75 1.75 1.00 Federal funds Effective rate 1.1700 1.1700 1.2000 High 1.3125 1.3125 1.3125 Low 1.0500 1.0500 1.1600 Bid 1.1600 1.1600 1.1700 Offer 1.1700 1.1700 1.1900 Week Latest ago 0.3500 0.5625 0.2500 0.3000 0.3200 —52-WEEK— High Low Treasury bill auction 1.035 1.020 1.300 0.270 1.240 1.185 1.240 0.480 1.360 1.300 1.360 0.590 4 weeks 13 weeks 26 weeks 0.15 U.S. government rates 52-Week High Low Prime rates U.S. Canada Japan 0.50 1.50 —52-WEEK— High Low Overnight repurchase International rates Secondary market 1.16 0.40 1.16 1.20 1.26 1.14 1.19 1.23 1.16 1.20 1.26 0.41 0.52 0.58 1.19 1.24 1.30 1.17 1.21 1.26 1.19 1.24 1.30 0.46 0.57 0.66 Commercial paper Nonfinancial 1-month 2-month 3-month Financial 1-month 2-month 3-month Discount window primary credit 1.75 1.75 1.75 1.00 n.a. n.a. Conventional mortgages n.a. n.a. Treasury yields at constant maturities 1-month 3-month 6-month 1-year 2-year 3-year 5-year 7-year 10-year 20-year 1.05 1.22 1.34 1.52 1.64 1.76 2.01 2.20 2.34 2.59 1.01 1.16 1.28 1.45 1.61 1.73 2.00 2.21 2.36 2.63 52-Week High Low Treasury yields (secondary market) 1.15 1.07 1.22 1.34 1.52 1.64 1.76 2.08 2.37 2.55 2.91 0.29 0.44 0.56 0.70 0.88 1.08 1.42 1.75 1.98 2.41 1-month 3-month 6-month 1.03 1.20 1.32 0.99 1.14 1.26 1.05 1.20 1.32 0.28 0.44 0.55 0.23 0.38 0.47 0.71 0.74 0.24 0.41 0.49 0.75 0.78 0.31 0.49 0.63 0.97 0.97 -0.21 -0.03 0.20 0.60 0.62 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. TIPS 5-year 7-year 10-year 20-year Long-term avg Interest rate swaps 1-year 2-year 3-year 4-year 5-year 7-year 10-year 30-year n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3.494 3.436 3.865 3.253 3.521 3.457 3.899 3.281 30 days 60 days Other short-term rates Week Latest ago n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. State and local bonds 3.00 n.a. One month Three month Six month One year 3.00 3.00 2.25 One month Three month Six month One year 0.62 1.25028 1.41586 1.61618 1.88428 1.24424 1.39703 1.59406 1.86428 1.25028 1.41586 1.61618 1.88428 0.54206 0.90622 1.27211 1.60456 -0.399 -0.378 -0.314 -0.247 -0.400 -0.378 -0.314 -0.237 -0.376 -0.325 -0.214 -0.077 -0.405 -0.381 -0.322 -0.247 -0.371 -0.329 -0.275 -0.191 One month Three month Six month One year Latest -0.371 -0.329 -0.276 -0.191 Value Traded -0.366 -0.311 -0.211 -0.070 16,963 136,060 53,318 100,516 407,570 138,361 2,770 53,899 119,776 6,223 Chg Open interest Currency Futures Japanese Yen (CME)-¥12,500,000; $ per 100¥ Nov Dec .8798 .8817 .8826 .8843 .8798 .8806 .8806 .8819 .0002 2,376 .0002 276,151 Nov Dec .7862 .7883 .7878 .7891 .7849 .7851 .7856 –.0031 1,251 .7860 –.0030 144,080 Nov Dec 1.3121 1.3182 1.3121 1.3185 1.3077 1.3074 1.3102 –.0095 530 1.3127 –.0082 174,115 Dec March'18 1.0059 1.0125 1.0086 1.0158 1.0034 1.0106 1.0065 1.0137 … .7647 .7655 .7640 .7641 .7651 .7642 .7663 .7659 .7658 .7657 .7651 .7642 .7613 .7613 .7612 .7611 .7614 .7642 .7623 .7621 .7620 .7619 .7617 Canadian Dollar (CME)-CAD 100,000; $ per CAD British Pound (CME)-£62,500; $ per £ Swiss Franc (CME)-CHF 125,000; $ per CHF Australian Dollar (CME)-AUD 100,000; $ per AUD Nov Dec Jan'18 Feb March June t t Mexican Peso (CME)-MXN 500,000; $ per MXN Dec .05199 .05206 March'18 .05106 .05127 Euro (CME)-€125,000; $ per € Nov 1.1659 1.1664 Dec 1.1678 1.1697 .0001 .0001 82,085 249 –.0017 1,154 –.0033 119,567 –.0033 627 –.0033 543 –.0033 947 –.0032 245 .05177 .05101 .05198 .00002 178,400 .05121 .00003 608 1.1646 1.1659 1.1671 1.1689 .0006 5,067 .0002 440,174 Index Futures Mini DJ Industrial Average (CBT)-$5 x index Dec March'18 23397 23400 23429 23417 23288 23286 23406 23399 2570.50 2581.90 S&P 500 Index (CME)-$250 x index Dec 2585.30 s 2581.40 Mini S&P 500 (CME)-$50 x index 2580.25 2585.50 2570.25 2582.00 Dec March'18 2581.25 2585.75 s 2570.75 2582.50 Mini S&P Midcap 400 (CME)-$100 x index 1826.40 1829.40 1814.70 1828.70 Dec Mini Nasdaq 100 (CME)-$20 x index Dec 6312.5 6325.0 s 6281.0 6312.0 March'18 6327.8 6340.5 s 6297.8 6328.0 Mini Russell 2000 (ICE-US)-$100 x index Dec 1474.90 1477.70 1463.20 1473.70 March'18 1464.60 1464.60 1464.60 1474.50 Mini Russell 1000 (ICE-US)-$100 x index Dec 1425.70 1432.40 1425.70 1430.70 U.S. Dollar Index (ICE-US)-$1,000 x index 94.36 94.55 94.31 94.39 Dec March'18 94.10 94.23 94.00 94.08 24 154,141 24 1,762 2.30 62,506 2.50 3,179,045 2.50 76,697 3.90 92,454 2.8 278,891 3.0 2,310 –.60 –.60 69,201 80 1.50 296 .11 .10 45,037 2,530 Source: SIX Financial Information Total return close YTD total return (%) Yield (%) Latest Low High Index YTD total return (%) Yield (%) Latest Low High Index Mortgage-Backed Bloomberg Barclays Broad Market Bloomberg Barclays 3.0 U.S. Aggregate 1934.94 Total return close 2.680 2.380 2.790 U.S. Corporate Indexes Bloomberg Barclays 1983.26 2.2 Mortgage-Backed 1950.60 1.6 Ginnie Mae (GNMA) 2.870 2.570 3.090 2.910 2.650 3.120 3.260 3.030 3.520 1163.07 2.3 Fannie mae (FNMA) 2.920 2.670 3.120 3.6 Intermediate 2.830 2.530 3.010 1791.00 2.4 Freddie Mac (FHLMC) 2.940 2.680 3.130 3810.17 8.4 Long term 4.210 4.100 4.710 n.a. n.a. Muni Master n.a. n.a. n.a. 564.42 3.7 Double-A-rated 2.740 2.470 2.870 n.a. n.a. 7-12 year n.a. n.a. n.a. 3.550 3.340 3.870 n.a. n.a. 12-22 year n.a. n.a. n.a. n.a. n.a. 22-plus year n.a. n.a. n.a. 5.0 2764.22 2612.09 U.S. Corporate 5.7 713.22 Triple-B-rated High Yield Bonds Merrill Lynch n.a. n.a. High Yield Constrained n.a. n.a. n.a. n.a. n.a. Triple-C-rated n.a. n.a. n.a. 542.86 1.1 Global Government 1.450 1.300 1.560 n.a. n.a. High Yield 100 n.a. n.a. n.a. 755.64 0.3 Canada 2.030 1.570 2.190 n.a. n.a. Global High Yield Constrained n.a. n.a. n.a. 371.34 0.6 EMU§ 1.086 0.933 1.363 Europe High Yield Constrained n.a. n.a. n.a. U.S Agency Bloomberg Barclays 710.76 0.6 France 0.840 0.710 1.210 n.a. n.a. Global Government J.P. Morgan† 507.97 -1.3 Germany 0.480 0.210 0.620 1636.90 2.0 U.S Agency 2.050 1.590 2.050 288.05 -0.04 Japan 0.410 0.240 0.460 1464.52 1.2 10-20 years 1.890 1.390 1.890 560.57 -1.0 Netherlands 0.610 0.360 0.760 20-plus years 2.980 2.730 3.460 915.23 U.K. 1.640 1.340 1.790 Yankee 2.900 2.610 3.090 796.27 7.0 3344.60 2448.93 4.5 0.2 7.7 Emerging Markets ** 5.645 5.279 6.290 *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds ** EMBI Global Index † In local currency § Euro-zone bonds Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session Country/ Coupon (%) Maturity, in years 1.500 2.250 Treasury MBS n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Notes on data: 0.919 2.152 1.805 t 2.633 t l 1.827 1.938 1.714 11.0 16.6 79.5 l 2.641 2.803 2.576 23.4 21.0 42.4 France 2 -0.574 t l -0.567 -0.519 l 0.782 0.668 Germany 2 -0.731 s 10 0.419 s l -0.749 -0.724 l 0.408 0.405 Italy 2 -0.219 s 10 1.833 t l -0.238 -0.125 0.080 -191.4 -184.6 -84.0 l 1.845 2.065 2.043 -56.6 -58.2 -10.9 0.100 Japan 2 -0.169 s 10 0.052 s l -0.174 -0.138 -0.247 -116.7 0.037 0.067 -186.5 -0.031 -234.8 -184.0 l -236.8 -218.3 1.450 Spain 2 -0.351 t 10 1.533 t l -0.309 -0.275 -0.108 -204.6 -196.3 -102.7 l 1.560 1.580 1.491 -86.6 -86.1 -66.1 0.493 s 1.330 t l 0.490 0.473 0.228 -120.2 -116.6 -69.2 l 1.341 1.373 1.252 -107.0 -113.1 -90.0 10 1.750 U.K. 2 4.250 10 0.782 -0.566 -226.9 0.757 -161.7 -222.3 -148.5 -177.4 -139.5 -0.602 -242.7 0.311 -198.0 -239.3 -152.2 -201.6 -184.1 Source: Tullett Prebon Corporate Debt in that same company’s share price. Investment-grade spreads that tightened the most… Maturity Current Spread*, in basis points One-day change Last week Stock Performance Close ($) % chg Issuer Symbol Coupon (%) AT&T Macy's Retail Holdings Qualcomm Kohl's T M QCOM KSS 3.000 4.375 4.300 4.250 Feb. 15, ’22 Sept. 1, ’23 May 20, ’47 July 17, ’25 57 295 170 167 –21 –16 –12 –10 62 289 148 n.a. 34.17 … 66.49 41.18 –0.15 … 2.97 –4.32 Nucor Philip Morris International Banco Bilbao Vizcaya Argentaria S.A. Old Republic International NUE PM BBVASM ORI 4.000 2.000 3.000 3.875 Aug. 1, ’23 Feb. 21, ’20 Oct. 20, ’20 Aug. 26, ’26 70 22 57 132 –10 –10 –8 –8 n.a. n.a. n.a. 134 55.70 103.51 ... 20.87 –0.23 0.48 ... 0.19 …And spreads that widened the most BNP ARE PBI TEVA 3.500 Nov. 16, ’27 3.450 April 30, ’25 3.625 Sept. 15, ’20 2.200 July 21, ’21 127 119 364 340 356 341 64 32 n.a. n.a. 282 n.a. ... 126.61 10.02 … ... –0.02 –3.38 … 52-Week High Low Hasbro Broadcom Enterprise Products Operating Xerox HAS AVGO EPD XRX 3.500 Sept. 15, ’27 3.875 Jan. 15, ’27 7.034 Jan. 15, ’68 3.625 March 15, ’23 147 180 –40 227 22 16 15 15 125 126 n.a. 200 96.83 265.01 … 28.17 5.88 0.02 … –3.43 1.196 27.102 1.366 0.244 1.214 131.374 1.506 0.257 DTCC GCF Repo Index Futures n.a. 1.501 2.277 Bnp Paribas S.A. Alexandria Real Estate Equities Pitney Bowes Teva Pharmaceutical Finance Netherlands Iii Open Implied Settle Change Interest Rate n.a. 1.662 2.404 10 0.100 Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago l Australia 2 0.000 Year ago U.S. 2 1.695 s 10 2.399 t 2.750 0.750 Month ago l 2.750 0.000 Yield (%) Latest(l) 0 20 40 60 80 100 120 Previous -0.375 -0.332 -0.276 -0.191 DTCC GCF Repo Index n.a. Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window primary credit rate is charged for discounts made and advances extended under the Federal Reserve's primary credit discount window program; rate is average for seven days ended Wednesday; Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid yields for all TIPS with remaining terms to maturity of 10 years or more; Swap rates are International Swaps and Derivatives Association (ISDA(R)) mid-market par rates for a fixed-rate payer, who in return receives three-month Libor, and are based on rates collected at 11:00 a.m. ET by Garban Intercapital PLC; Source is Reuters; Moody's triple-AAA rates are averages of industrial bonds only; Muni rates are Thursday quotes based on the Bond Buyer Index for general obligation, 20 years to maturity, mixed quality debt; Mortgage rates are contract rates on commitments for fixed-rate first mortgages Sources: Federal Reserve; for additional information on these rate data and their derivation, please see, www.federalreserve.gov/releases/h15/data.htm 1.32 Euro interbank offered rate (Euribor) n.a. Notes on data: 1.29 Euro Libor Treasury Nov Treasury Dec Treasury Jan Eurodollars 1 month 3 month 6 month 4,327 4,497 Settle Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week highs and lows for different types of bonds 2.750 52-Week high low Call money Corporate bonds, Moody's seasoned Aaa Baa .03 .10 Contract High hilo Low Open Bonds | WSJ.com/bonds Tracking Bond Benchmarks 2.050 Libor 1.16 16.80 15.69 Dec 152-050 152-300 152-010 152-130 3.0 763,823 March'18 151-040 151-250 150-300 151-080 3.0 21,426 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 124-215 124-290 124-175 124-200 –2.5 3,218,633 March'18 124-120 124-190 124-080 124-105 –2.0 57,556 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% 116-317 117-027 116-277 116-285 –3.5 3,124,434 Dec March'18 116-242 116-272 116-205 116-210 –3.7 77,557 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% 107-190 107-195 107-167 107-172 –1.5 1,739,250 Dec March'18 107-140 107-145 107-120 107-122 –1.7 79,683 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. 98.843 98.845 98.843 98.843 … 205,338 Nov Jan'18 98.615 98.615 t 98.610 98.615 … 338,984 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% 100.875 100.922 100.516 100.609 –.063 29,467 Dec 1 Month Libor (CME)-$3,000,000; pts of 100% 98.5300 98.5300 t 98.5300 98.5275 .0025 53 Jan Eurodollar (CME)-$1,000,000; pts of 100% 98.5825 98.5850 98.5825 98.5825 … 102,771 Nov Dec 98.4675 98.4725 98.4650 98.4675 .0025 1,754,370 March'18 98.3100 98.3150 98.2950 98.3000 –.0100 1,319,832 Dec 98.0400 98.0450 98.0100 98.0100 –.0300 1,655,176 0.050 Data are annualized on a 360-day basis. Treasury yields are per annum, on actively traded noninflation and inflation-indexed issues that are adjusted to constant maturities. Data are from weekly Federal Reserve release H.15. Federal funds (effective) 16.76 15.49 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% 30-year mortgage yields 90 days Week Ended Nov 10 Nov 3 16.82 15.72 Open interest Interest Rate Futures Fannie Mae Key Interest Rates 52-Week High Low 16.80 15.72 Chg Cocoa (ICE-US)-10 metric tons; $ per ton. 2,211 2,229 2,184 2,208 –15 Dec March'18 2,199 2,214 2,178 2,201 –11 Coffee (ICE-US)-37,500 lbs.; cents per lb. 127.50 128.15 126.65 127.60 .05 Dec March'18 130.90 131.35 130.05 130.75 –.15 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. 14.99 15.18 14.86 15.13 .17 March May 14.97 15.12 14.87 15.04 .08 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. 27.01 27.25 27.00 27.25 .07 March Cotton (ICE-US)-50,000 lbs.; cents per lb. 69.00 69.68 68.85 68.88 –.17 Dec March'18 69.14 69.63 68.85 68.93 –.21 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. … … s … 160.60 –2.00 Dec Jan'18 162.70 169.50 s 160.45 160.60 –2.00 0.500 Commercial paper (AA financial) Week Ended Nov 10 Nov 3 Settle Global Government Bonds: Mapping Yields Borrowing Benchmarks | WSJ.com/bonds Money Rates Sept. index level Contract High hilo Low Open Milk (CME)-200,000 lbs., cents per lb. Metal & Petroleum Futures Energy WSJ.com/commodities 98.830 unch. 8834 1.170 98.690 unch. 2043 1.310 98.585 unch. 450 1.415 U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US. Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; General Electric Capital Corp.; Tullett Prebon Information, Ltd. High-yield issues with the biggest price increases… Coupon (%) Maturity Issuer Symbol Mattel Teamhealth Holdings CenturyLink Embarq MAT TMH CTL EQ 6.200 Oct. 1, ’40 6.375 Feb. 1, ’25 7.600 Sept. 15, ’39 7.995 June 1, ’36 Intelsat Luxembourg S.A. Mallinckrodt International Finance Nabors Industries Chs/Community Health Systems INTEL MNK NBR CYH 7.750 4.750 5.500 8.000 June 1, ’21 April 15, ’23 Jan. 15, ’23 Nov. 15, ’19 Bond Price as % of face value Current One-day change 102.750 88.250 82.031 93.750 64.000 81.470 99.474 92.281 5.75 3.75 3.03 3.00 3.00 2.97 2.72 2.03 Last week Stock Performance Close ($) % chg n.a. 85.500 87.625 100.500 17.64 ... 15.33 ... 20.66 ... –0.97 ... 63.125 85.000 96.500 92.368 ... … 6.12 … ... … –4.38 … 105.250 95.500 82.500 58.750 28.80 ... 6.96 ... 0.52 ... 2.81 ... 57.875 108.438 104.250 101.750 ... ... 17.44 29.23 ... ... –0.06 0.55 …And with the biggest price decreases Eldorado Resorts Exela Intermediate Frontier Communications EP Energy ERI 6.000 EXLINT 10.000 FTR 8.750 EPENEG 6.375 April 1, ’25 July 15, ’23 April 15, ’22 June 15, ’23 101.250 91.563 73.000 56.000 Murray Energy Altice Luxembourg S.A. American Axle And Manufacturing Goodyear Tire & Rubber MURREN 11.250 April 15, ’21 ATCNA 7.625 Feb. 15, ’25 AXL 6.500 April 1, ’27 GT 4.875 March 15, ’27 53.000 101.588 101.375 100.688 –4.75 –3.44 –3.00 –2.50 –2.25 –2.16 –1.63 –1.62 *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread. Note: Data are for the most active issue of bonds with maturities of two years or more Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. B8 | Tuesday, November 14, 2017 BIGGEST 1,000 STOCKS How to Read the Stock Tables The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed securities. Prices are composite quotations that include primary market trades as well as trades reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock Exchange, ISE and BATS. The list comprises the 1,000 largest companies based on market capitalization. Underlined quotations are those stocks with large changes in volume compared with the issue’s average trading volume. Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous closing price was $2 or higher. Footnotes: s-New 52-week high. t-New 52-week low. dd-Indicates loss in the most recent four quarters. FD-First day of trading. h-Does not meet continued listing standards lf-Late filing q-Temporary exemption from Nasdaq requirements. t-NYSE bankruptcy v-Trading halted on primary market. vj-In bankruptcy or receivership or being reorganized under the Bankruptcy Code, or securities assumed by such companies. Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and changes in the closing prices from 4 p.m. the previous day. Monday, November 13, 2017 Stock Net Sym Close Chg NYSE ABB ABB 25.48 AECOM ACM 35.63 AES AES 10.82 Aflac AFL 84.40 AT&T T 34.17 AbbottLabs ABT 55.30 AbbVie ABBV 95.12 Accenture ACN 143.92 AcuityBrands AYI 163.53 Adient ADNT 76.22 AdvanceAuto AAP 82.28 AdvSemiEngg ASX 6.15 Aegon AEG 5.96 AerCap AER 50.61 Aetna AET 173.02 AffiliatedMgrs AMG 182.86 AgilentTechs A 67.13 AgnicoEagle AEM 45.07 Agrium AGU 106.63 s AirProducts APD 162.76 AlaskaAir ALK 61.72 Albemarle ALB 143.37 Alcoa AA 43.13 s AlexandriaRlEst ARE 126.61 Alibaba BABA 184.54 Alleghany Y 576.37 Allegion ALLE 83.94 t Allergan AGN 174.41 AllianceData ADS 224.20 AlliantEnergy LNT 44.30 AllisonTransm ALSN 42.27 Allstate ALL 99.44 AllyFinancial ALLY 25.65 AlticeUSA ATUS 21.10 Altria MO 65.84 AlumofChina ACH 18.03 Ambev ABEV 6.12 s Ameren AEE 63.39 AmericaMovil AMX 17.20 AmericaMovil A AMOV 17.13 AmCampus ACC 42.72 s AEP AEP 76.13 AmerExpress AXP 93.90 s AmericanFin AFG 106.03 AmerHomes4Rent AMH 22.12 AIG AIG 62.00 AmerTowerREIT AMT 150.04 AmerWaterWorks AWK 89.52 Ameriprise AMP 157.32 AmerisourceBrgn ABC 75.40 Ametek AME 68.89 s Amphenol APH 88.48 AnadarkoPetrol APC 50.23 Andeavor ANDV 106.15 AB InBev BUD 117.77 AnnalyCap NLY 11.38 AnteroResources AR 19.89 Anthem ANTM 218.46 Aon AON 141.89 Apache APA 43.49 ApartmtInv AIV 45.47 ApolloGlblMgmt APO 29.19 AquaAmerica WTR 36.44 Aramark ARMK 42.85 ArcelorMittal MT 29.02 ArcherDaniels ADM 39.74 Arconic ARNC 23.79 s AristaNetworks ANET 225.15 ArrowElec ARW 78.07 AstraZeneca AZN 32.91 Athene ATH 48.39 AtmosEnergy ATO 89.54 Autohome ATHM 61.19 Autoliv ALV 123.25 AutoZone AZO 595.26 Avalonbay AVB 188.11 Avangrid AGR 51.21 AveryDennison AVY 107.94 AxaltaCoating AXTA 31.92 BB&T BBT 46.49 s BCE BCE 48.10 BHPBilliton BHP 42.70 BHPBilliton BBL 37.37 BP BP 39.88 BRF BRFS 12.69 t BT Group BT 16.23 BWX Tech BWXT 60.58 BakerHughes BHGE 31.88 Ball BLL 40.31 BancoBilbaoViz BBVA 8.33 BancodeChile BCH 89.09 BancoMacro BMA 113.97 BcoSantChile BSAC 30.10 BancoSantander SAN 6.42 BanColombia CIB 37.34 BankofAmerica BAC 26.40 0.12 0.04 0.59 0.96 -0.05 0.50 -0.31 0.03 3.35 -1.20 1.06 ... -0.11 -1.06 -2.10 -1.50 0.32 0.07 -0.24 2.46 -0.70 2.75 0.12 -0.03 -1.87 -3.24 0.81 2.20 -0.73 0.62 -1.03 0.32 0.08 -0.80 0.82 -0.67 ... 0.91 -0.07 0.15 0.92 1.35 0.38 0.40 -0.01 -0.06 -0.50 0.78 0.10 0.40 0.66 0.27 -0.88 -1.05 -0.39 0.14 -0.37 0.19 -1.36 -0.64 0.34 -1.20 0.46 0.17 -0.12 -0.19 -0.45 4.10 -0.21 ... 0.17 0.38 -0.31 -0.19 -2.80 0.95 0.65 2.75 -0.06 0.36 -0.12 -0.08 -0.25 -0.42 0.09 -0.30 0.08 -1.07 0.33 ... -0.95 -3.21 -0.29 -0.04 -1.29 -0.11 Stock Net Sym Close Chg BankofMontreal BMO 77.07 -0.15 BankNY Mellon BK 51.02 0.09 BkNovaScotia BNS 65.34 -0.25 t Barclays BCS 9.36 -0.08 Bard CR BCR 333.08 1.19 BarrickGold ABX 13.95 -0.03 BaxterIntl BAX 64.41 0.37 BectonDicknsn BDX 220.00 0.77 Berkley WRB 68.13 -0.61 BerkHathwy A BRK.A 276347687.00 BerkHathwy B BRK.B 184.40 0.72 BerryGlobal BERY 58.57 1.03 BestBuy BBY 56.97 0.29 Bio-RadLab A BIO 254.43 -3.76 BlackKnight BKI 46.15 0.30 BlackBerry BB 10.69 -0.09 BlackRock BLK 465.11 -0.72 BlackstoneGroup BX 31.76 -0.37 BoardwalkPipe BWP 14.30 -0.25 Boeing BA 262.42 1.57 BorgWarner BWA 52.03 -0.04 BostonProps BXP 125.93 0.08 BostonSci BSX 28.45 0.09 Braskem BAK 29.57 -0.46 Bristol-Myers BMY 60.99 0.13 BritishAmTob BTI 64.71 -0.29 BrixmorProp BRX 18.02 -0.23 BroadridgeFinl BR 87.58 -0.87 BrookfieldMgt BAM 42.21 0.19 BrookfieldInfr BIP 43.77 0.30 Brown&Brown BRO 49.40 -0.08 Brown-Forman A BF.A 58.78 1.09 Brown-Forman B BF.B 58.18 0.90 t BuckeyePtrs BPL 49.74 -0.77 Bunge BG 66.31 -0.84 BurlingtonStore BURL 98.25 -0.05 CBD Pao CBD 21.29 -0.44 s CBRE Group CBG 42.18 0.65 CBS A CBS.A 55.79 -1.34 CBS B CBS 55.92 -0.82 CF Industries CF 37.37 0.09 CGI Group GIB 52.97 -0.38 CIT Group CIT 45.91 1.22 s CMS Energy CMS 49.63 0.36 CNA Fin CNA 54.42 0.13 CNOOC CEO 140.87 -1.68 CPFLEnergia CPL 16.77 0.02 CRH CRH 35.11 -0.69 CVS Health CVS 71.48 0.49 s CabotOil COG 29.06 0.07 CalAtlantic CAA 51.81 -0.16 CamdenProperty CPT 94.73 0.54 CampbellSoup CPB 47.27 -0.15 CIBC CM 88.85 -0.61 CanNtlRlwy CNI 80.33 -0.67 CanNaturalRes CNQ 36.06 -0.46 CanPacRlwy CP 173.35 -1.91 Canon CAJ 38.38 -0.38 CapitalOne COF 86.95 -0.20 CardinalHealth CAH 58.33 -0.22 Carlisle CSL 109.10 0.03 CarMax KMX 72.35 -0.33 Carnival CCL 65.98 1.32 Carnival CUK 66.15 1.12 Caterpillar CAT 136.53 0.05 Celanese A CE 105.80 0.08 Cemex CX 7.91 -0.19 CenovusEnergy CVE 10.94 -0.32 Centene CNC 94.36 0.68 CenterPointEner CNP 29.63 0.22 CentraisElBras EBR 6.15 0.13 CenturyLink CTL 15.33 -0.15 Chemours CC 51.91 1.84 Chevron CVX 117.23 0.05 ChinaEastrnAir CEA 24.73 -0.44 ChinaLifeIns LFC 17.42 -0.34 ChinaMobile CHL 51.19 -0.40 ChinaPetrol SNP 73.52 -0.97 ChinaSoAirlines ZNH 38.15 0.20 ChinaTelecom CHA 50.00 -0.19 ChinaUnicom CHU 15.51 0.31 t Chipotle CMG 277.50 -1.95 Chubb CB 151.34 -0.01 ChunghwaTele CHT 33.69 -0.27 Church&Dwight CHD 45.54 0.79 Cigna CI 197.61 -0.37 CimarexEnergy XEC 121.87 -3.18 Citigroup C 71.99 -0.26 CitizensFin CFG 37.20 0.52 Clorox CLX 135.08 3.03 Coca-Cola KO 46.72 0.18 Coca-Cola Euro CCE 39.42 -0.08 Coca-Cola Femsa KOF 68.52 -0.21 ColgatePalmolive CL 73.70 0.49 ColonyNorthStar CLNS 12.60 0.03 Comerica CMA 76.94 2.01 SABESP SBS 9.09 0.19 ConagraBrands CAG 34.84 0.04 ConchoRscs CXO 142.41 -0.80 ConocoPhillips COP 52.57 -0.42 Stock Net Sym Close Chg s ConEd ED 88.31 s ConstBrands A STZ 220.76 s ConstBrands B STZ.B 221.28 ContinentalRscs CLR 45.83 Cooper COO 237.07 Corning GLW 31.66 Coty COTY 16.75 Credicorp BAP 201.09 CreditSuisse CS 15.87 CrownCastle CCI 112.90 CrownHoldings CCK 59.45 Cullen/Frost CFR 95.20 Cummins CMI 169.20 s DCT Industrial DCT 60.72 s DTE Energy DTE 114.24 DXC Tech DXC 96.80 s Danaher DHR 93.33 Darden DRI 82.84 DaVita DVA 54.99 Deere DE 131.91 DellTechs DVMT 81.81 DelphiAuto DLPH 95.57 DeltaAir DAL 48.86 DeutscheBank DB 17.93 DevonEnergy DVN 39.65 Diageo DEO 135.95 DigitalRealty DLR 122.70 DiscoverFinSvcs DFS 65.00 Disney DIS 104.74 DolbyLab DLB 60.05 s DollarGeneral DG 83.55 DominionEner D 81.85 Domino's DPZ 173.03 Donaldson DCI 46.39 DouglasEmmett DEI 40.51 Dover DOV 93.79 DowDuPont DWDP 70.46 DrPepperSnap DPS 87.03 DrReddy'sLab RDY 35.51 s DukeEnergy DUK 89.88 DukeRealty DRE 29.11 ENI E 33.41 EOG Rscs EOG 104.46 EQT EQT 64.58 EQT Midstream EQM 69.28 EastmanChem EMN 91.43 Eaton ETN 77.94 EatonVance EV 50.89 Ecolab ECL 131.64 Ecopetrol EC 11.86 EdisonInt EIX 81.10 EdwardsLife EW 105.24 EmersonElec EMR 61.39 EnbridgeEnPtrs EEP 14.03 t Enbridge ENB 36.22 Encana ECA 12.26 EnelAmericas ENIA 10.20 EnelChile ENIC 5.68 EnelGenChile EOCC 25.90 EnergyTransferEq ETE 16.72 EnergyTransfer ETP 16.80 Entergy ETR 86.64 EnterpriseProd EPD 24.36 Equifax EFX 108.79 EquityLife ELS 90.57 EquityResdntl EQR 70.15 EssexProp ESS 258.63 s EsteeLauder EL 126.32 EverestRe RE 228.55 EversourceEner ES 64.76 s Exelon EXC 42.09 ExtraSpaceSt EXR 86.87 ExxonMobil XOM 82.89 s FMC FMC 94.88 FactSet FDS 195.89 FederalRealty FRT 130.89 FedEx FDX 221.43 Ferrari RACE 110.44 FiatChrysler FCAU 17.31 FibriaCelulose FBR 15.41 s FidelityNatlFin FNF 38.74 FNFV Group FNFV 17.50 FidelityNtlInfo FIS 92.85 s 58.com WUBA 73.00 FirstAmerFin FAF 53.96 FirstData FDC 17.13 FirstRepBank FRC 91.59 s FirstEnergy FE 34.21 FleetCorTech FLT 181.42 Fluor FLR 46.68 FomentoEconMex FMX 86.99 FordMotor F 12.16 ForestCIty A FCE.A 25.37 Fortis FTS 37.72 Fortive FTV 72.60 FortBrandsHome FBHS 64.43 Franco-Nevada FNV 83.39 FranklinRscs BEN 40.81 Freeport-McMoRan FCX 14.43 FreseniusMed FMS 48.63 1.12 2.09 3.16 -0.86 8.01 -0.07 0.44 -0.63 -0.16 -0.38 0.30 1.85 0.25 0.97 1.79 0.86 1.09 0.20 -0.01 -0.32 -0.77 0.28 -0.03 -0.01 -0.76 -0.06 1.85 0.24 -0.04 -0.60 -0.60 1.04 -0.30 0.11 0.38 ... 0.49 0.71 -0.10 0.99 0.15 -0.28 -0.12 -0.60 -1.61 0.68 0.02 -0.07 1.34 -0.18 1.04 1.39 -0.22 -0.28 -0.26 -0.39 -0.10 -0.01 -0.22 -0.75 0.26 1.51 -0.64 0.05 1.15 0.90 2.25 1.71 -2.59 0.69 0.79 0.87 -0.05 1.66 -0.32 -1.12 3.28 0.88 0.04 0.07 0.19 0.25 0.09 4.14 -0.29 0.06 1.37 0.33 0.87 -0.36 0.96 0.15 0.45 0.02 -0.05 0.46 -0.59 -0.32 0.02 0.21 New Highs and Lows | WSJ.com/newhighs Monday, November 13, 2017 52-Wk % Sym Hi/Lo Chg Stock 52-Wk % Sym Hi/Lo Chg Stock 75.83 2.0 4.64 6.0 13.79 -1.4 12.51 ... VirtusGlbMulti VGI 19.46 0.3 163.56 1.5 VishayPrecision VPG 26.40 4.2 127.15 ... VMware VMW 122.44 -0.3 63.42 1.5 WEX WEX 125.56 ... 76.30 1.8 Wal-Mart WMT 91.98 0.1 106.61 0.4 WarriorMetCoal HCC 28.58 2.5 88.62 0.3 WW Ent WWE 27.71 1.2 54.89 0.2 XcelEnergy 50.85 1.2 XEL 26.62 0.6 227.13 1.9 15.23 0.7 10.80 5.9 AMC 14.82 1.3 AMC Ent 43.95 -0.8 AZZ 48.40 -0.2 AZZ 42.21 1.6 AllerganPfdA AGNpA 619.59 1.4 AGN 169.61 1.3 49.85 0.7 Allergan 62.40 0.3 AXE 29.26 0.2 AnixterIntl 2.32 71.1 AnteroMidstream AMGP 17.20 -2.3 26.81 -2.2 88.66 1.3 AnteroMidstream AM 16.18 -0.2 221.28 1.4 ApolloSrFRFd AFT 19.79 -0.6 ARD 221.50 1.0 Ardagh 1.87 -2.1 120.99 -0.2 AvonProducts AVP 16.22 -1.8 BT Group BT 16.38 1.1 9.29 -0.8 BCS 29.67 0.1 Barclays 57.26 1.3 BKH 60.82 1.6 BlackHills 9.77 -1.0 114.33 1.6 BlkRk2022GlbIncm BGIO 93.38 1.2 BlueCapReins BCRH 12.10 -1.6 49.39 -1.5 BPL 41.53 0.9 BuckeyePtrs 19.20 0.5 85.09 -0.7 BylineBancorp BY 90.22 1.1 CBL AssocPfdE CBLpE 21.67 -3.4 CMG 263.00 -0.7 126.99 1.4 Chipotle 12.87 -2.4 83.95 3.8 ClearBridgeEnMLPFd CEM 10.67 -1.6 42.18 1.9 ClearbridgeEngyMLP EMO 7.10 0.1 CoeurMining CDE 95.25 1.8 4.25 -2.5 38.83 0.5 CommunityHlthSys CYH 10.59 -1.9 CushingTotRetFd SRV 74.77 6.0 24.75 3.4 CustomersBancorp CUBI 32.24 2.1 17.75 -1.7 DieboldNixdorf DBD 34.50 1.0 0.92 -0.4 DoverDowns DDE 10.88 4.2 5.37 -3.7 Duff&PhelpsSelEn DSE 9.98 -4.0 3.50 -4.0 EastmanKodak KODK 37.37 3.8 EastmanKodakWt KODK.WS 0.01 -45.6 63.81 0.8 14.12 -0.9 EtnVncFR IT EFT 55.19 0.1 14.08 -0.6 EtnVncSrFltRte EFR 36.85 1.7 6.34 -0.5 EtnVncSrIT EVF 42.60 -0.5 1.16 -3.3 EldoradoGold EGO 46.10 -0.7 13.22 -1.6 EnbridgeEnergy EEQ 47.29 2.4 36.00 -0.7 Enbridge ENB 96.14 0.8 EntercomCommsWi ETMw 10.35 -0.5 15.15 7.7 EnvisionHlthcr EVHC 23.77 3.6 108.43 1.7 69.10 -1.1 EsterlineTechs ESL 23.94 -0.7 11.45 -3.6 FidcryClymrOppFd FMO 37.07 1.7 14.02 -1.5 FT MLP&Energy FEI 148.46 1.6 11.34 -2.0 FT NewOppsMLP FPL 42.62 1.7 12.76 -0.8 FT SrFR Incm FCT 52.85 1.6 FortunaSilver 4.03 2.0 FSM 45.08 0.6 GabelliGlbSmRt GGZr 0.23 -2.8 89.62 0.7 GameStop 15.91 -1.4 GME 6.84 1.6 GeneralElec 18.75 -7.2 GE 13.10 7.0 GenesisEnergy GEL 22.19 -2.5 19.10 ... GenieEnergy 4.94 -5.9 GNE 127.04 0.8 Glaukos GKOS 28.74 -0.3 28.86 1.5 GlaxoSmithKline GSK 34.97 -0.6 24.98 ... Graham 18.01 0.9 GHM 157.00 1.0 GrupoTelevisa TV 19.61 1.4 70.42 1.1 HancockTxAdvGlb HTY 8.43 -0.7 14.31 1.4 HeclaMining 3.86 -2.7 HL 16.14 0.2 HighlandFROpps HFRO 15.00 -1.1 24.50 1.9 Intrexon 10.26 6.5 XON 44.15 0.9 InvescoCreditOpps VTA 11.40 -0.3 25.76 0.3 JohnsonControls JCI 35.85 -2.5 30.53 0.7 JustEnergy 4.47 -2.4 JE 48.99 1.1 KayneAnderson KED 14.44 -3.7 21.70 2.5 KayneAnEnerTRFd KYE 9.63 -3.0 51.21 0.7 KayneAnMLPInv KYN 14.94 -2.7 67.22 1.3 KayneAnMidstrEner KMF 12.83 -1.8 51.03 0.6 KeyEnergySvcs KEG 8.92 -10.5 31.67 1.3 KinderMorgan KMI 17.41 -1.2 61.55 1.5 KinderMorganPfdA KMIpA 36.01 -1.4 9.20 1.1 LSC Comm LKSD 13.72 -6.3 53.70 1.2 LendingClub 4.16 -1.2 LC 155.01 0.7 MFS Intermd MIN 4.16 ... 105.96 0.5 NationalGrid 59.11 -1.3 NGG 122.31 0.7 NewSeniorInvt SNR 8.10 -0.2 68.93 2.9 NewellBrands NWL 28.11 -2.8 40.19 2.0 NuSTAREnergy NS 31.06 -2.1 38.58 -0.8 NuvEnerMLPTR JMF 10.36 -3.2 36.71 -0.3 NuvFRIncmFd JFR 11.08 1.1 44.33 0.3 NuvFR OppFd JRO 10.72 -1.6 25.82 -0.1 PHH 10.94 -0.2 PHH 27.00 0.2 PIMCO HiIncm PHK 7.45 -2.3 TysonFoods TSN VHI NYSE highs - 100 Valhi VirtusGlbDiv&Incm ZTR AberdeenGrChinaFd GCH AirProducts APD AlexandriaRlEst ARE Ameren AEE AEP AEP AmericanFin AFG Amphenol APH AnthemUn ANTX ApolloGlMgmtPfdA APOpA AristaNetworks ANET ArmadaHoffler AHH AsiaPacificFund APB BCE BCE CBRE Group CBG CMS Energy CMS CabotOil COG ChinaZenixAuto ZX ConEd ED ConstBrands B STZ.B ConstBrands A STZ Cooper-Standard CPS Cott COT CubeSmart CUBE DCT Industrial DCT DTE Energy DTE Danaher DHR DaqoNewEnergy DQ DollarGeneral DG DukeEnergy DUK EsteeLauder EL EvercoreA EVR Exelon EXC FMC FMC FidelityNatlFin FNF 58.com WUBA FirstIndRlty FR FirstEnergy FE Gannett GCI GeoPark GPRK GlobusMedical GMED GrubHub GRUB Haemonetic HAE HawaiianElec HE HollyFrontier HFC HoraceMannEdu HMN DR Horton DHI IDACORP IDA IONGeophysical IO Insperity NSP InvitationHome INVH JanusHenderson JHG JonesLang JLL KornFerry KFY LambWeston LW LibertyProperty LPT LifeStorage LSI MFS SpcVal MFV MagnaChipSem MX ManchesterUnited MANU Manpower MAN NRG Energy NRG NTTDoCoMo DCM NextEraEnergy NEE NextEraEnergyUn NEEpQ NorthstarRltyEur NRE OM AssetMgmt OMAM Oppenheimer A OPY PNM Resources PNM PSBusParksPfdW PSBpW PlanetFitness PLNT PortlandGenElec POR PrefApartment APTS Progressive PGR Prologis PLD PublicServiceEnt PEG PulteGroup PHM QTS Realty QTS ResoluteForest RFP RobertHalf RHI Rogers ROG Salesforce.com CRM SempraEnergy SRE SiteOneLandscape SITE Square SQ StarwoodWaypt SFR SuncorEnergy SU Teradyne TER TsakosEngyNavPfdE TNPpE TwoHarborsPfdB TWOpB NYSE lows - 102 52-Wk % Sym Hi/Lo Chg PitneyBowes PBI PitneyBowesNt43 PBIpB PPlus CZN-1 PIY PrestigeBrands PBH Quantum QTM RedwoodTrust RWT RitchieBros RBA SalientMidstream SMM SandRidgeMS SDT SandRidgeMS II SDR SpectraEnerPtrs SEP SpiritRealtyPfdA SRCpA THLCreditSrLoan TSLF TownsquareMedia TSQ UniversalHealthB UHS VoyaPrimeRate PPR WstAstCpLoanFd TLI WesternGasEquity WGP WesternGasPtrs WES WideOpenWest WOW Willbros WG WorldFuelSvcs INT XeriumTech XRM 9.86 -3.4 23.84 -2.8 19.26 -15.8 40.11 2.1 4.22 -14.4 14.62 ... 24.08 -1.0 10.05 -2.7 1.19 -4.0 1.19 -5.3 40.01 -2.2 23.87 -0.4 16.40 -0.2 7.44 -2.7 95.59 0.1 5.00 0.2 10.45 -0.3 36.11 -2.5 44.26 -2.3 11.28 -3.3 1.33 -6.8 26.05 -0.2 3.79 -5.0 Net Sym Close Chg GGP GGP 24.05 Gallagher AJG 63.94 Gap GPS 26.72 GardnerDenver GDI 29.41 Gartner IT 116.32 Gazit-Globe GZT 9.39 GeneralDynamics GD 200.13 t GeneralElec GE 19.02 GeneralMills GIS 52.97 GeneralMotors GM 43.57 Genpact G 31.10 GenuineParts GPC 85.29 Gildan GIL 30.17 t GlaxoSmithKline GSK 35.09 GlobalPayments GPN 99.60 GoDaddy GDDY 48.57 Goldcorp GG 13.26 GoldmanSachs GS 240.27 Graco GGG 128.82 Grainger GWW 195.79 GreatPlainsEner GXP 33.65 GpoAvalAcciones AVAL 8.22 GpFinSantandMex BSMX 8.12 t GrupoTelevisa TV 19.98 GuidewireSoftware GWRE 79.82 HCA Healthcare HCA 77.71 HCP HCP 27.23 HDFC Bank HDB 93.61 HP HPQ 21.17 HSBC HSBC 48.26 Halliburton HAL 44.21 Hanesbrands HBI 19.23 HarleyDavidson HOG 46.88 Harris HRS 138.97 HartfordFinl HIG 55.69 HealthcareAmer HTA 30.75 Heico HEI 90.16 Heico A HEI.A 75.70 Helmerich&Payne HP 56.38 Herbalife HLF 64.85 Hershey HSY 108.18 Hess HES 46.59 HewlettPackard HPE 13.48 Hilton HLT 72.62 s HollyFrontier HFC 41.85 HomeDepot HD 165.35 HondaMotor HMC 32.81 Honeywell HON 146.72 HormelFoods HRL 32.45 s DR Horton DHI 47.09 HostHotels HST 20.03 HuanengPower HNP 27.97 Hubbell HUBB 121.76 Humana HUM 240.94 HuntingtonIngalls HII 239.18 Huntsman HUN 30.69 HyattHotels H 69.74 ICICI Bank IBN 9.46 ING Groep ING 18.16 Invesco IVZ 34.52 IDEX IEX 127.96 IllinoisToolWks ITW 157.61 Infosys INFY 14.80 Ingersoll-Rand IR 84.76 Ingredion INGR 129.13 ICE ICE 67.08 InterContinentl IHG 56.35 IBM IBM 148.40 IntlFlavors IFF 149.72 IntlPaper IP 54.39 Interpublic IPG 18.67 s InvitationHome INVH 23.57 IronMountain IRM 40.99 IsraelChemicals ICL 4.06 ItauUnibanco ITUB 12.69 JPMorganChase JPM 97.86 JacobsEngg JEC 59.82 JamesHardie JHX 15.97 s JanusHenderson JHG 37.04 J&J JNJ 139.76 t JohnsonControls JCI 36.00 s JonesLang JLL 148.16 JuniperNetworks JNPR 25.36 KAR Auction KAR 48.25 KB Fin KB 50.82 KKR KKR 19.23 KT KT 13.91 KSCitySouthern KSU 105.12 Kellogg K 63.76 KeyCorp KEY 17.92 KeysightTechs KEYS 44.32 KilroyRealty KRC 74.48 KimberlyClark KMB 115.41 KimcoRealty KIM 18.95 t KinderMorgan KMI 17.46 Knight-Swift KNX 38.04 Kohl's KSS 41.18 KoninklijkePhil PHG 38.79 KoreaElcPwr KEP 17.17 Kroger KR 22.14 Kyocera KYO 68.65 LATAMAirlines LTM 13.06 L Brands LB 48.95 LG Display LPL 13.32 LINE LN 43.24 L3 Tech LLL 185.12 LabCpAm LH 149.87 s LambWeston LW 52.78 LasVegasSands LVS 67.25 Lazard LAZ 47.69 Lear LEA 174.36 Leggett&Platt LEG 45.81 Leidos LDOS 61.63 Lennar A LEN 58.22 Lennar B LEN.B 48.76 LennoxIntl LII 189.23 LeucadiaNatl LUK 25.65 s LibertyProperty LPT 44.87 EliLilly LLY 82.86 LincolnNational LNC 73.90 LionsGate A LGF.A 30.69 LionsGate B LGF.B 29.55 Stock The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest session. % CHG-Daily percentage change from the previous trading session. Stock Stock 1.85 -0.14 -0.51 0.65 -1.16 0.05 0.36 -1.47 -0.31 0.91 -0.08 -0.16 -0.07 -0.21 0.75 0.42 0.01 0.12 -1.35 -7.69 0.49 -0.11 -0.03 0.28 -0.49 -0.97 0.22 -0.41 -0.06 -0.46 -0.37 0.09 -0.42 0.21 0.17 0.17 -0.28 -0.50 -1.77 -0.64 -0.42 -0.52 -0.22 -0.07 -0.20 1.24 -0.12 0.97 0.12 1.09 0.04 -0.13 -0.84 -3.45 -1.48 -0.37 -0.09 -0.15 -0.05 -0.34 -0.06 0.47 -0.21 -0.20 -1.17 0.81 -0.43 -0.76 2.95 -0.46 -0.12 -0.16 0.33 -0.03 ... 0.35 -0.21 -0.02 0.62 0.20 -0.93 2.40 0.36 -0.24 -0.37 -0.03 -0.42 0.32 -0.94 0.28 -0.24 -0.37 1.27 -0.20 -0.21 -0.34 -1.86 -0.24 -0.14 0.06 -0.96 0.13 -0.71 -0.18 0.69 0.90 -0.59 0.82 -0.15 0.40 -1.07 -0.13 -0.24 -0.49 -0.79 0.44 -0.01 0.28 -0.43 0.41 -0.54 -0.50 FrankFTSEJapan FLJP FrankFTSEJapanHdg FLJH FrankFTSEMexico FLMX FrankFTSE SKorea FLKR FrankFTSETaiwan FLTW FrankFTSE UK FLGB GuggBS2027CorpBd BSCR iShiBondsDec2027Cp IBDS HancockMultiSC JHSC NuShESGUSAggBd NUBD ProShrUSCnsmrSvc SCC ProShrUSRlEst SRS ProShrUSUtil SDP SchwabSrtTRmUSTrsr SCHO USAA IntlVal UIVM USAA USA SC Val USVM VanEckHiIncmInfra YMLI VirtusGlovistaEM EMEM 25.83 25.77 24.75 25.39 25.38 24.57 19.90 24.72 24.90 24.92 27.95 28.51 22.85 50.19 49.70 49.04 12.96 24.75 -0.3 -0.4 -1.2 -1.5 -0.3 -1.2 ... -0.2 -0.4 -0.2 -2.9 -0.9 -3.0 ... -0.6 0.1 -2.1 -1.1 NYSE American highs - 4 Birks BGI LadenburgThalmann LTS TrioTech TRT WirelessTel WTT 2.69 3.33 7.21 2.12 19.0 -2.4 7.3 4.5 NYSE American lows - 11 2.65 -6.7 AmShrHosp AMS 4.76 ... BallantyneStrong BTN 0.13 -54.8 Banro BAA CRH Medical CRHM 1.55 -2.9 1.31 -1.4 CanFiteBiopharm CANF eMagin 1.65 -8.3 EMAN 22.03 -2.3 FT EnerIncome FEN 10.85 -4.5 IMPAC Mortgage IMH 65.16 ... 2.16 -8.4 KlondexMines KLDX 92.87 0.3 8.48 -2.0 NeubrgBermMLPIncm NML 30.20 0.4 0.28 -3.4 RegionalHlthProp RHE 74.55 24.25 32.98 42.91 15.69 25.36 36.49 20.52 25.70 26.14 26.52 26.40 35.78 64.35 45.69 28.66 24.97 51.00 33.00 82.95 140.53 25.69 25.92 30.44 29.20 24.96 35.45 26.57 44.17 47.17 106.03 68.35 52.91 34.02 24.55 74.85 36.93 101.54 64.75 48.94 109.20 56.22 48.99 36.70 84.21 146.57 123.40 31.49 38.09 1.4 1.6 2.7 0.7 ... 0.3 1.0 0.1 0.1 0.9 0.1 -0.2 0.5 2.0 0.5 0.4 0.8 0.2 -0.8 0.4 1.1 0.8 0.2 ... 0.9 0.3 0.1 -0.4 2.2 0.4 ... 0.7 2.4 0.3 0.8 0.5 0.2 3.5 0.7 0.4 0.1 1.2 0.5 0.5 ... 0.3 1.1 0.3 0.2 NYSE Arca lows - 30 AIPoweredEquity AIEQ DirexCSI300CnA CHAD DirexMexicoBl3 MEXX DirexRealEstBr3 DRV DirexSilverMinBl2 SHNY ETFMG PrimeJrSilver SILJ ETRACSMthPay2xLev DVHL ETRACSMthlyPay2x SMHD FrankFTSEBrazil FLBR FrankFTSEEurope FLEE FrankFTSEEurHdg FLEH FrankFTSEGermany FLGR 24.18 31.03 20.47 10.05 8.50 10.51 19.71 17.02 23.88 24.62 24.57 24.90 ... -0.2 0.4 -1.5 -1.3 -1.0 -0.1 -1.9 -1.3 -1.0 -2.4 -0.6 Nasdaq highs - 74 AlignTech ALGN 257.60 AllenaPharm ALNA 12.50 AltairEngg ALTR 21.78 Amazon.com AMZN1139.90 2.09 AptoseBiosci APTO 44.39 CRA Intl CRAI CadenceDesign CDNS 44.69 7.30 CambiumLearning ABCD CanterburyPark CPHC 13.95 CareerEducation CECO 13.10 21.98 Celcuity CELC 1.87 ChinaInfoTech CNIT 5.77 ChromaDex CDXC Cognex CGNX 138.61 Coherent COHR 314.76 CSX-LinksCrudeOil USOI 26.13 7.95 CumberlandPharm CPIX 8.70 DASAN Zhone DZSI 2.36 EnphaseEnergy ENPH 23.55 FirstComSC FCCO 58.56 FiveBelow FIVE 20.80 GDSHoldings GDS GoldenEnt GDEN 31.84 12.96 GTx GTXI HollysysAuto HOLI 23.71 ICU Medical ICUI 210.95 47.65 II-VI IIVI IPG Photonics IPGP 225.55 33.92 IntegratedDevice IDTI 15.85 Intricon IIN Intuit INTU 155.37 iShMSCIChinaETF MCHI 67.59 JensynAcqn Rt JSYNR 0.53 5.99 Joint JYNT KellyServices A KELYA 29.30 66.19 LGI Homes LGIH 45.87 MicronTech MU MonsterBeverage MNST 62.42 Nathan's NATH 95.88 NatlEnerSvsWt NESRW 0.66 9.97 NatlEnerSvs NESR NektarTherap NKTR 41.34 OncoSecMedical ONCS 2.95 Otelco OTEL 12.60 Overstock OSTK 56.95 43.20 PAM Transport PTSI PennNational PENN 27.43 27.94 PinnacleEnt PNK 25.34 PwrShDivAch PFM PrincipalPriceSet PSET 31.10 29.20 RCI Hospitality RICK 7.04 RCM Tech RCMT 55.55 RMR Group RMR Roku ROKU 47.49 SageTherap SAGE 99.80 SperoTherap SPRO 15.40 SpringBkPharm SBPH 18.93 Synopsys SNPS 87.94 TechTarget TTGT 13.55 9.23 TheBancorp TBBK 1.7 3.6 4.6 0.3 20.6 -1.9 1.4 1.3 -1.9 6.0 -3.0 9.1 7.0 0.8 -2.5 -0.8 4.2 3.2 18.1 1.1 0.9 1.5 0.7 14.7 0.9 2.0 0.7 0.5 -1.5 8.7 1.0 ... 11.2 7.1 3.1 3.4 1.8 1.7 0.9 1.7 1.6 14.2 4.0 4.2 5.9 8.9 1.0 2.1 0.4 0.7 2.8 4.0 1.5 28.5 -1.4 4.2 -3.3 0.6 2.4 1.7 Net Sym Close Chg LiveNationEnt LYV 44.93 0.16 LloydsBanking LYG 3.53 -0.02 LockheedMartin LMT 312.95 1.78 Loews L 49.89 0.38 Lowe's LOW 77.53 0.04 LyondellBasell LYB 104.19 -0.07 M&T Bank MTB 159.44 2.34 MGM Resorts MGM 33.06 0.18 MPLX MPLX 34.13 -0.65 MSCI MSCI 125.46 0.44 Macerich MAC 64.07 -0.30 MacquarieInfr MIC 65.59 -0.59 Macy's M 19.33 -0.65 MagellanMid MMP 66.22 -1.12 MagnaIntl MGA 53.04 0.02 s Manpower MAN 126.00 1.03 ManulifeFin MFC 21.07 -0.15 MarathonOil MRO 15.55 -0.07 MarathonPetrol MPC 62.20 0.48 Markel MKL 1071.76 8.35 Marsh&McLennan MMC 83.00 -0.15 MartinMarietta MLM 212.47 -0.78 Masco MAS 38.89 0.28 Mastercard MA 149.69 0.15 McCormick MKC 96.96 0.04 McCormickVtg MKC.V 97.13 0.07 McDonalds MCD 167.37 1.78 McKesson MCK 138.05 0.44 Medtronic MDT 79.20 -0.13 Merck MRK 55.10 -0.38 MetLife MET 52.16 -0.04 MettlerToledo MTD 630.84 8.18 MichaelKors KORS 54.09 -0.62 MicroFocus MFGP 34.27 -0.26 MidAmApt MAA 106.03 0.56 MitsubishiUFJ MTU 6.51 -0.03 MizuhoFin MFG 3.58 ... MobileTeleSys MBT 10.93 -0.12 MohawkIndustries MHK 265.02 1.17 MolsonCoors B TAP 80.84 0.50 Monsanto MON 118.15 -0.15 Moody's MCO 142.15 -0.04 MorganStanley MS 48.63 -0.13 Mosaic MOS 23.28 0.44 MotorolaSolutions MSI 91.37 0.30 s NRG Energy NRG 28.78 0.43 s NTTDoCoMo DCM 24.93 0.01 NVR NVR 3300.00 10.36 t NationalGrid NGG 59.20 -0.75 NatlOilwell NOV 33.06 -0.46 NatlRetailProp NNN 42.55 0.38 NewOrientalEduc EDU 84.58 -0.95 NY CmntyBcp NYCB 12.78 0.66 t NewellBrands NWL 28.47 -0.83 NewfieldExpln NFX 32.09 -1.22 NewmontMining NEM 35.71 0.19 s NextEraEnergy NEE 156.78 1.62 NielsenHoldings NLSN 36.17 -0.45 Nike NKE 55.91 -0.18 NiSource NI 27.32 0.12 NobleEnergy NBL 27.53 -0.58 Nokia NOK 4.86 -0.05 NomuraHoldings NMR 5.71 -0.11 Nordstrom JWN 38.72 -1.31 NorfolkSouthern NSC 127.62 0.47 NorthropGrumman NOC 298.48 0.35 Novartis NVS 82.71 0.33 NovoNordisk NVO 49.76 -0.15 Nucor NUE 55.70 -0.13 OGE Energy OGE 35.12 0.11 ONEOK OKE 52.21 -0.19 OccidentalPetrol OXY 67.93 -0.24 Olin OLN 36.54 ... OmegaHealthcare OHI 28.17 0.12 Omnicom OMC 67.92 0.37 Oracle ORCL 49.40 0.08 Orange ORAN 16.46 -0.15 OrbitalATK OA 132.89 -0.07 Orix IX 85.10 -1.16 Oshkosh OSK 85.51 0.61 OwensCorning OC 82.20 0.31 PG&E PCG 56.89 -0.06 PLDT PHI 31.58 -2.55 PNC Fin PNC 132.23 -0.25 POSCO PKX 71.29 -0.74 PPG Ind PPG 114.55 -0.12 PPL PPL 36.63 0.34 PVH PVH 127.47 ... PackagingCpAm PKG 112.36 2.09 PaloAltoNtwks PANW 138.67 -1.68 ParkHotels PK 28.77 -0.04 ParkerHannifin PH 181.30 -0.93 ParsleyEnergy PE 26.77 -0.41 Pearson PSO 9.11 -0.01 PembinaPipeline PBA 35.77 -0.03 Pentair PNR 68.27 0.22 PepsiCo PEP 114.04 1.29 PerkinElmer PKI 71.27 -0.06 Perrigo PRGO 86.80 -0.90 PetroChina PTR 70.20 -1.26 PetroleoBrasil PBR 10.62 -0.09 PetroleoBrasilA PBR.A 10.06 -0.10 Pfizer PFE 35.30 0.12 PhilipMorris PM 103.51 0.49 Phillips66 PSX 93.32 -0.34 PinnacleFoods PF 54.03 -0.19 PinnacleWest PNW 89.79 1.45 PioneerNatRscs PXD 156.92 -2.01 PlainsAllAmPipe PAA 20.36 -0.73 PlainsGP PAGP 20.88 -0.67 PolarisIndustries PII 120.28 0.92 Potash POT 19.11 0.04 Praxair PX 148.15 -0.13 PrincipalFin PFG 68.03 -0.03 Procter&Gamble PG 89.00 0.84 s Progressive PGR 51.10 0.35 s Prologis PLD 67.07 0.85 PrudentialFin PRU 110.44 -0.28 Prudential PUK 48.79 0.15 s PublicServiceEnt PEG 50.66 0.28 PublicStorage PSA 213.25 1.73 s PulteGroup PHM 31.57 0.42 Qudian QD 27.23 -0.28 52-Wk % Sym Hi/Lo Chg Stock NYSE Arca highs - 52 BarclaysWILETN WIL CnsmrDiscSelSector XLY DirexCSI300CnABl2 CHAU DirexHmbldrBull3 NAIL DirexRealEstBl3 DRN DirexUtilBl3X UTSL EcoLogicalStrat HECO Entrepreneur30Fund ENTR FidelityRealEst FREL FidelityMSCIUtils FUTY FTHeitmanPrmRlEst PRME FrankFTSEChina FLCH FrankFTSE HK FLHK GlbXSciBetaAsiaXJ SCIX GraniteBloomComm COMB GuggChinaAllCap YAO GuggChinaTech CQQQ GuggDefEqty DEF GuggS&P500EWRlEst EWRE GuggSolar TAN HrznsS&P500CovCall HSPX iPathGEMSIndexETN JEM iShU.S.RealEstate IYR iShU.S.Utilities IDU iShMSCIHongKong EWH iShMSCISingapore EWS JanusVelTailLC TRSK HancockUtils JHMU JPM US Moment JMOM KraneBoseraChinaA KBA KraneMSCIChinaEnv KGRN KraneZacksNewChina KFYP PwrShS&P500LoVol SPLV PwrShTreaColl CLTL ProShrUltraRE URE ProShrUltraUtil UPW RealEstSectorSPDR XLRE SPDRMSCIChinaA XINA SPDRMSCIUSAStrat QUS SPDRS&P500HiDiv SPYD SPDRS&P1500ValTilt VLU SPDRS&PHlthCareEqp XHE SchwabUS Div SCHD SPDR SP China GXC UtilitiesSelSector XLU VanEckCSI300 PEK VanEckSMEChiNxt CNXT VanEckRetail RTH VangdCnsmrDiscr VCR VangdUtilities VPU XtrkrsHarvCSI300 ASHR XtrkrsMSCIAllChina CN Stock 52-Wk % Sym Hi/Lo Chg TheStreet TST TrilliumTherap TRIL USA Tech USAT USA Truck USAK UniversalDisplay OLED UnivLogistics ULH UroGenPharma URGN VascularBiogenics VBLT VeriSign VRSN Wingstop WING WisdTrChinaxSOE CXSE WynnResorts WYNN XOMA XOMA ZAGG ZAGG 1.56 10.70 7.60 17.18 178.71 22.85 44.63 8.05 111.37 39.20 86.59 156.40 33.00 20.43 33.7 5.9 7.1 0.5 0.7 0.9 5.4 3.3 1.3 2.2 0.6 0.8 0.2 3.1 Stock Net Sym Close Chg QuestDiag DGX 92.00 QuintilesIMS Q 102.91 RELX RENX 22.35 RELX RELX 23.09 RPM RPM 51.67 RSP Permian RSPP 37.14 RalphLauren RL 86.67 RaymondJames RJF 83.37 Raytheon RTN 184.46 RealtyIncome O 56.67 RedHat RHT 123.99 RegencyCtrs REG 67.21 RegionsFin RF 15.44 ReinsuranceGrp RGA 150.25 RenaissanceRe RNR 138.80 RepublicServices RSG 63.91 ResMed RMD 84.00 RestaurantBrands QSR 65.22 RioTinto RIO 49.20 s RobertHalf RHI 53.53 Rockwell ROK 192.54 RockwellCollins COL 133.37 RogersComm B RCI 52.37 Rollins ROL 45.34 RoperTech ROP 256.04 RoyalBkCanada RY 78.57 RoyalBkScotland RBS 7.29 RoyalCaribbean RCL 124.48 RoyalDutchA RDS.A 63.90 RoyalDutchB RDS.B 65.92 SAP SAP 112.37 S&P Global SPGI 158.03 SINOPECShanghai SHI 60.14 SK Telecom SKM 25.06 SLGreenRealty SLG 100.06 s Salesforce.com CRM 105.78 Sanofi SNY 44.64 SantanderConUSA SC 15.93 Sasol SSL 30.35 Scana SCG 44.60 Schlumberger SLB 65.04 SchwabC SCHW 44.60 ScottsMiracleGro SMG 99.10 SealedAir SEE 44.98 SemicondctrMfg SMI 9.06 s SempraEnergy SRE 121.96 SensataTech ST 47.38 ServiceCorp SCI 34.80 ServiceMaster SERV 46.89 ServiceNow NOW 125.03 ShawComm B SJR 22.66 SherwinWilliams SHW 389.71 ShinhanFin SHG 43.21 Shopify SHOP 98.77 SimonProperty SPG 160.31 SmithAO AOS 58.92 Smith&Nephew SNN 35.52 Smucker SJM 106.49 Snap SNAP 12.40 SnapOn SNA 156.07 SOQUIMICH SQM 59.23 Sony SNE 46.08 Southern SO 51.82 SoCopper SCCO 43.93 SouthwestAirlines LUV 53.25 t SpectraEnerPtrs SEP 40.05 SpectrumBrands SPB 105.01 SpiritAeroSys SPR 80.25 Sprint S 6.03 s Square SQ 39.98 StanleyBlackDck SWK 163.97 StarwoodProp STWD 21.65 StateStreet STT 90.79 Statoil STO 20.69 Steris STE 87.53 STMicroelec STM 23.86 Stryker SYK 155.75 SumitomoMits SMFG 7.85 SunCommunities SUI 93.29 SunLifeFinancial SLF 38.93 s SuncorEnergy SU 36.30 SunTrustBanks STI 57.33 SynchronyFin SYF 32.59 Syngenta SYT 92.30 Sysco SYY 54.02 TAL Education TAL 29.56 TE Connectivity TEL 93.36 Telus TU 38.06 Ternium TX 28.29 TIM Part TSU 17.72 TJX TJX 70.76 TableauSoftware DATA 71.24 TaiwanSemi TSM 42.01 -0.05 -1.14 -0.03 -0.02 0.31 -0.83 0.04 -0.18 -0.35 0.40 -0.19 0.76 0.27 0.63 -0.90 0.46 0.94 0.10 -0.31 0.63 -0.07 -0.21 -0.18 0.35 -2.16 -0.17 -0.03 0.26 ... -0.08 -0.22 1.09 0.58 -0.62 0.17 0.54 -0.36 -0.25 -0.27 0.66 -0.70 0.33 0.47 0.63 0.32 0.83 -0.51 ... -0.02 -0.95 -0.15 0.25 0.09 -1.24 -3.44 0.36 -0.44 2.37 -0.36 0.20 1.47 -0.14 0.46 0.02 -0.24 -0.90 -0.07 -0.45 -0.16 0.77 1.00 0.12 0.14 -0.20 0.68 -0.14 1.27 0.02 0.75 0.05 -0.12 0.54 0.52 0.02 -0.17 0.16 -0.17 -0.19 -0.03 0.20 0.54 -0.91 0.29 Net Sym Close Chg Stock Tapestry TPR 40.44 TargaResources TRGP 42.29 Target TGT 60.40 TataMotors TTM 31.99 TechnipFMC FTI 28.40 TeckRscsB TECK 21.84 TelecomArgentina TEO 32.56 TelecomItalia TI 8.06 TelecomItalia A TI.A 6.57 TeledyneTech TDY 179.37 Teleflex TFX 256.94 TelefonicaBras VIV 14.86 Telefonica TEF 9.90 TelekmIndonesia TLK 30.01 Tenaris TS 29.39 s Teradyne TER 43.85 TevaPharm TEVA 11.74 Textron TXT 53.70 ThermoFisherSci TMO 188.21 ThomsonReuters TRI 44.28 ThorIndustries THO 130.45 3M MMM 228.22 Tiffany TIF 93.08 TimeWarner TWX 88.49 Toll Bros TOL 46.05 Torchmark TMK 84.69 Toro TTC 61.92 TorontoDomBk TD 57.17 Total TOT 55.55 TotalSystem TSS 72.77 ToyotaMotor TM 125.67 TransCanada TRP 49.48 TransDigm TDG 262.00 TransUnion TRU 54.01 Travelers TRV 133.32 TurkcellIletism TKC 9.01 TurquoiseHill TRQ 3.08 Twitter TWTR 20.17 TylerTech TYL 170.89 s TysonFoods TSN 75.59 UBS Group UBS 17.01 UDR UDR 39.94 UGI UGI 48.31 US Foods USFD 26.58 UltraparPart UGP 21.83 Unilever UN 57.11 Unilever UL 55.86 UnionPacific UNP 116.48 UnitedContinental UAL 57.81 UnitedMicro UMC 2.57 UPS B UPS 114.81 UnitedRentals URI 144.61 US Bancorp USB 51.68 UnitedTech UTX 117.07 UnitedHealth UNH 212.66 t UniversalHealthB UHS 97.76 UnumGroup UNM 52.82 VEREIT VER 8.23 VF VFC 69.67 Visa V 111.40 VailResorts MTN 229.33 Vale VALE 10.10 ValeroEnergy VLO 80.67 Vantiv VNTV 69.39 VarianMed VAR 108.24 Vedanta VEDL 19.30 VeevaSystems VEEV 61.49 Ventas VTR 65.39 Verizon VZ 44.75 VistraEnergy VST 18.95 s VMware VMW 121.84 VornadoRealty VNO 75.97 VoyaFinancial VOYA 41.04 VulcanMaterials VMC 123.99 WABCO WBC 144.76 WEC Energy WEC 68.35 W.P.Carey WPC 71.69 Wabtec WAB 75.26 s Wal-Mart WMT 90.99 WasteConnections WCN 70.15 WasteMgt WM 82.14 Waters WAT 194.64 Watsco WSO 164.38 WellCareHealth WCG 201.65 WellsFargo WFC 53.72 Welltower HCN 68.32 WestPharmSvcs WST 101.63 WestarEnergy WR 54.72 WestAllianceBcp WAL 53.75 t WesternGasEquity WGP 36.27 t WesternGasPtrs WES 44.61 WesternUnion WU 19.52 WestlakeChem WLK 93.95 -0.38 -1.84 -1.00 -0.33 -0.52 0.31 -0.48 -0.26 -0.16 -1.26 4.05 -0.07 -0.13 -0.32 -0.27 0.15 -0.04 -0.57 2.03 -0.22 0.56 0.77 1.51 -2.11 0.14 0.43 -0.15 -0.16 -0.62 0.44 1.18 0.11 -5.00 0.61 -2.22 -0.01 -0.04 -0.15 0.22 1.45 -0.10 0.20 0.39 -0.02 0.28 -0.17 -0.20 -0.22 -0.71 -0.02 1.58 -1.70 0.07 -1.04 1.59 0.05 0.40 0.02 0.04 -0.48 -2.71 0.03 -0.70 0.08 0.69 -0.56 0.02 0.48 -0.13 0.34 -0.31 0.36 0.33 -0.10 -0.93 0.95 0.70 -1.25 0.07 0.86 0.82 1.43 -0.67 1.10 -0.09 0.20 -0.02 0.95 0.33 -0.92 -1.03 -0.62 0.96 Net Sym Close Chg Stock WestpacBanking WBK 24.59 WestRock WRK 58.84 Weyerhaeuser WY 35.96 WheatonPrecMetals WPM 20.21 Whirlpool WHR 161.67 Williams WMB 28.23 WilliamsPartners WPZ 36.23 Wipro WIT 5.09 WooriBank WF 41.50 Wyndham WYN 106.30 XPO Logistics XPO 72.48 s XcelEnergy XEL 50.79 Xerox XRX 28.17 Xylem XYL 66.03 YPF YPF 23.16 YumBrands YUM 79.74 YumChina YUMC 42.13 ZTO Express ZTO 16.92 ZayoGroup ZAYO 33.99 ZimmerBiomet ZBH 111.06 Zoetis ZTS 68.88 -0.05 0.18 -0.18 0.07 -0.38 -0.39 -0.93 0.06 -0.08 0.23 0.38 0.59 -1.00 -0.22 -0.16 0.15 0.40 -0.69 -0.03 0.31 -0.25 NASDAQ AGNC Invt AGNC 19.82 0.27 Ansys ANSS 150.87 0.59 ASML ASML 178.85 -0.75 Abiomed ABMD 195.13 -0.08 ActivisionBliz ATVI 63.62 0.62 AdobeSystems ADBE 181.85 0.13 AdvMicroDevices AMD 11.09 -0.17 AkamaiTech AKAM 53.52 -0.74 AlexionPharm ALXN 113.45 -1.72 s AlignTech ALGN 253.73 4.27 Alkermes ALKS 49.17 1.32 AlnylamPharm ALNY 129.11-10.87 Alphabet C GOOG 1025.75 -2.32 Alphabet A GOOGL 1041.20 -2.95 Altaba AABA 70.27 -0.28 s Amazon.com AMZN 1129.17 3.82 Amdocs DOX 62.54 0.02 Amerco UHAL 365.43 -4.24 AmericanAirlines AAL 45.74 -0.08 Amgen AMGN 171.50 -0.85 AnalogDevices ADI 90.03 0.44 Apple AAPL 173.97 -0.70 AppliedMaterials AMAT 57.03 0.67 ArchCapital ACGL 95.70 0.35 Atlassian TEAM 52.27 -0.13 Autodesk ADSK 124.64 1.53 ADP ADP 111.53 0.44 Baidu BIDU 237.37 -0.03 BankofOzarks OZRK 43.56 0.50 Biogen BIIB 315.71 5.27 BioMarinPharm BMRN 81.06 -0.97 Bioverativ BIVV 53.91 0.25 bluebirdbio BLUE 154.55 2.80 BrighthouseFin BHF 55.99 -0.59 Broadcom AVGO 265.01 0.05 CA CA 32.32 -0.13 CDK Global CDK 63.26 -0.14 CDW CDW 67.74 0.48 CH Robinson CHRW 80.36 0.03 CME Group CME 140.15 2.27 CSX CSX 49.75 -0.33 s CadenceDesign CDNS 44.67 0.63 CaesarsEnt CZR 12.40 -0.10 Carlyle CG 21.18 -0.07 CboeGlobalMkts CBOE 115.74 1.29 Celgene CELG 101.16 -1.18 CentennialRsc CDEV 20.09 -0.11 Cerner CERN 65.47 0.16 CharterComms CHTR 343.72 5.28 CheckPointSftw CHKP102.80 0.29 ChinaLodging HTHT 128.77 2.80 CincinnatiFin CINF 73.30 -0.10 Cintas CTAS 147.35 1.25 CiscoSystems CSCO 33.95 -0.04 CitrixSystems CTXS 84.26 0.04 s Cognex CGNX 137.50 1.14 CognizantTech CTSH 74.56 0.30 s Coherent COHR 301.32 -7.65 Comcast A CMCSA 37.25 0.40 CommerceBcshrs CBSH 55.84 0.66 CommScope COMM 33.94 0.15 Copart CPRT 35.88 0.03 CoStarGroup CSGP 296.43 -0.25 Costco COST 171.46 0.10 Ctrip.com CTRP 46.48 0.81 CypressSemi CY 16.92 -0.05 CyrusOne CONE 64.12 2.32 DISH Network DISH 50.86 0.05 DentsplySirona XRAY 65.80 0.22 35.53 1.9 27.56 0.7 3.13 -7.9 10.40 -1.4 9.23 -7.9 29.60 -1.5 0.21 -7.7 3.45 -3.5 10.35 -3.1 0.26 -1.6 2.13 -6.5 2.60 -5.7 0.64 -15.8 6.77 -1.2 4.11 -4.9 0.30 -4.6 0.81 -3.2 7.55 1.4 4.61 -4.3 4.27 -10.9 9.10 -9.0 2.35 -4.9 13.55 -4.4 34.76 0.7 0.99 -16.3 0.02 -17.3 21.76 -2.4 7.38 -6.2 1.58 -6.8 4.28 1.1 1.72 -1.1 65.72 -0.8 8.45 -3.4 35.75 -5.5 68.55 1.3 1.45 -23.5 5.82 -5.8 6.27 7.8 14.47 -1.0 1.37 -2.7 13.80 -3.1 84.13 ... 0.01 18.5 43.30 0.7 5.30 ... 6.15 -10.8 13.90 -1.7 2.19 -2.6 0.96 -4.9 0.97 -7.3 11.99 -0.7 5.25 -4.3 1.58 6.7 1.34 -0.7 0.91 -3.1 0.88 -2.9 17.03 -8.4 1.22 2.3 3.45 -2.1 1.41 -1.2 10.63 -5.3 4.01 0.2 5.09 -3.7 4.21 -3.0 18.89 -2.6 4.83 -3.9 4.11 -9.8 1.36 15.0 2.67 -1.1 137.17 -1.5 6.95 -1.7 2.42 -10.3 88.10 -0.7 2.20 9.1 4.85 -2.0 4.51 -4.1 8.10 -4.1 6.05 -2.4 7.17 -3.5 0.50 -10.5 11.90 -1.5 60.47 ... 84.33 ... 24.69 -0.3 4.04 4.9 Net Sym Close Chg DiamondbackEner FANG 110.97 DiscoveryComm B DISCB 23.50 DiscoveryComm A DISCA 16.99 DiscoveryComm C DISCK 15.93 DollarTree DLTR 93.69 E*TRADE ETFC 43.60 EXACT Sci EXAS 58.22 EastWestBancorp EWBC 57.03 eBay EBAY 35.85 ElbitSystems ESLT 144.24 ElectronicArts EA 112.01 Equinix EQIX 484.12 Ericsson ERIC 6.01 ErieIndemnity A ERIE 121.70 Exelixis EXEL 26.05 Expedia EXPE 120.28 ExpeditorsIntl EXPD 59.41 ExpressScripts ESRX 60.88 F5Networks FFIV 120.85 Facebook FB 178.77 Fastenal FAST 47.23 FifthThirdBncp FITB 28.19 FirstSolar FSLR 61.57 Fiserv FISV 128.16 Flex FLEX 18.27 FlirSystems FLIR 47.11 Fortinet FTNT 40.35 Gaming&Leisure GLPI 36.64 Garmin GRMN 60.58 GileadSciences GILD 72.85 Goodyear GT 29.23 Grifols GRFS 22.80 GpoFinGalicia GGAL 51.60 HD Supply HDS 34.98 Hasbro HAS 96.83 t HenrySchein HSIC 66.50 Hologic HOLX 40.64 JBHunt JBHT 102.58 HuntingtonBcshs HBAN 13.36 IAC/InterActive IAC 123.67 IdexxLab IDXX 147.79 IHSMarkit INFO 42.99 s IPG Photonics IPGP 224.69 IcahnEnterprises IEP 53.73 Icon ICLR 113.24 Illumina ILMN 209.14 Incyte INCY 107.21 Intel INTC 45.75 InteractiveBrkrs IBKR 53.90 s Intuit INTU 154.89 IntuitiveSurgical ISRG 392.12 IonisPharma IONS 54.84 JD.com JD 41.34 JackHenry JKHY 112.85 JazzPharma JAZZ 136.47 JetBlue JBLU 18.95 JunoTherap JUNO 56.05 KLA Tencor KLAC 101.93 KraftHeinz KHC 79.85 LKQ LKQ 37.22 LamResearch LRCX 209.23 LamarAdvertising LAMR 76.29 LibertyBroadbandA LBRDA 88.71 LibertyBroadbandC LBRDK 89.13 LibertyGlobal C LBTYK 28.80 LibertyGlobal A LBTYA 29.76 LibertyLiLAC C LILAK 21.78 LibertyLiLAC A LILA 21.96 LibertyQVC A QVCA 23.43 LibertyVenturesA LVNTA 56.71 LibertyFormOne C FWONK 36.78 LibertyFormOne A FWONA 35.19 LibertyBraves A BATRA 22.22 LibertyBraves C BATRK 22.29 LibertySirius A LSXMA 41.83 LibertySirius C LSXMK 41.84 LincolnElectric LECO 86.34 LogitechIntl LOGI 35.10 LogMeIn LOGM 115.60 lululemon LULU 64.60 MKS Instrum MKSI 104.15 MarketAxess MKTX 174.52 Marriott MAR 120.39 MarvellTech MRVL 20.13 MatchGroup MTCH 28.69 MaximIntProducts MXIM 53.46 MelcoResorts MLCO 25.13 MercadoLibre MELI 267.08 MicrochipTech MCHP 91.02 s MicronTech MU 45.60 Microsemi MSCC 52.62 Microsoft MSFT 83.93 Middleby MIDD 109.16 -0.89 1.25 -0.20 -0.19 -1.37 0.68 -2.15 0.37 -0.12 -1.85 -0.74 1.91 ... -0.98 0.20 -0.46 -0.44 0.83 1.14 0.31 -0.36 0.52 -0.02 0.16 -0.10 0.38 0.41 -0.14 -0.25 -0.92 0.16 -0.34 -0.88 -0.69 5.38 -0.55 1.67 0.73 0.22 -0.34 0.11 0.06 1.16 -1.96 -0.57 0.20 2.45 0.17 0.02 1.59 2.97 -1.04 1.38 -0.84 -2.23 -0.04 -1.54 -0.51 0.13 0.06 1.84 1.27 0.98 0.64 0.11 0.04 -0.44 -0.20 -0.48 0.14 -0.67 -0.65 -0.42 -0.31 0.81 0.86 -0.37 -0.35 0.10 -0.27 ... 1.03 0.28 ... 0.23 -0.08 0.02 -3.79 -0.54 0.82 ... 0.06 -0.68 Stock Net Sym Close Chg Momo MOMO 29.88 1.53 Mondelez MDLZ 42.05 0.10 s MonsterBeverage MNST 62.20 1.04 Mylan MYL 37.57 -0.59 NXP Semi NXPI 115.65 -0.40 Nasdaq NDAQ 75.41 1.84 NatlInstruments NATI 44.65 -0.26 NetApp NTAP 46.00 -0.34 Netease NTES 302.16 -0.71 Netflix NFLX 195.08 3.06 Neurocrine NBIX 74.64 -0.82 NewsCorp B NWS 15.60 0.05 NewsCorp A NWSA 15.23 0.13 Nordson NDSN 123.81 -0.06 NorthernTrust NTRS 92.46 -0.05 NorwegianCruise NCLH 55.27 0.04 NVIDIA NVDA 212.63 -3.51 OReillyAuto ORLY 214.17 -0.26 OldDomFreight ODFL 118.24 -0.66 ON Semi ON 21.58 0.02 OpenText OTEX 33.41 -0.01 PTC PTC 64.58 -0.21 Paccar PCAR 69.32 -0.02 PacWestBancorp PACW 45.20 0.50 Paychex PAYX 65.10 0.53 PayPal PYPL 74.03 0.04 People'sUtdFin PBCT 18.21 0.50 PilgrimPride PPC 34.04 -0.49 Priceline PCLN 1722.15 24.90 Qiagen QGEN 30.77 -0.77 Qorvo QRVO 79.08 -0.49 Qualcomm QCOM 66.49 1.92 RandgoldRscs GOLD 90.57 0.02 RegenPharm REGN 393.62-10.92 RossStores ROST 64.91 -0.85 RoyalGold RGLD 86.39 0.78 Ryanair RYAAY 111.41 0.16 SBA Comm SBAC 165.20 -3.75 SEI Investments SEIC 64.67 -0.01 Sina SINA 106.15 0.31 SS&C Tech SSNC 39.81 -0.05 SVB Fin SIVB 212.26 3.38 ScrippsNetworks SNI 78.88 -0.30 Seagate STX 37.66 -0.33 SeattleGenetics SGEN 57.12 -0.84 t Shire SHPG 138.32 -2.04 SignatureBank SBNY 127.19 2.26 SiriusXM SIRI 5.50 0.16 Skyworks SWKS 110.30 -0.11 Splunk SPLK 67.74 -2.00 Starbucks SBUX 56.64 -0.40 SteelDynamics STLD 37.35 0.12 Symantec SYMC 27.97 -0.39 s Synopsys SNPS 87.82 0.54 TD Ameritrade AMTD 49.72 0.86 T-MobileUS TMUS 56.44 -0.36 TRowePrice TROW 93.41 -0.16 TakeTwoSoftware TTWO 118.26 2.58 Tesla TSLA 315.40 12.41 TexasInstruments TXN 97.03 0.09 TractorSupply TSCO 61.33 -1.34 Trimble TRMB 40.99 0.62 21stCenturyFoxB FOX 27.82 -0.25 21stCenturyFoxA FOXA 28.55 -0.29 UltaBeauty ULTA 198.03 -2.73 UltimateSoftware ULTI 198.00 -0.40 s UniversalDisplay OLED 177.05 1.15 VEON VEON 3.72 ... s VeriSign VRSN 111.18 1.43 VeriskAnalytics VRSK 90.12 -0.09 VertxPharm VRTX 148.03 -0.71 Viacom B VIAB 24.72 -0.17 Viacom A VIA 30.15 -0.45 Vodafone VOD 28.85 -0.50 WPP WPPGY 84.82 -1.48 WalgreensBoots WBA 70.37 -0.62 Weibo WB 108.58 3.42 WesternDigital WDC 88.44 -0.48 WillisTwrsWatson WLTW 161.49 -0.08 Workday WDAY 106.17 -1.14 s WynnResorts WYNN 155.24 1.21 Xilinx XLNX 72.33 0.46 Yandex YNDX 31.62 0.63 Zillow C Z 39.12 -0.42 Zillow A ZG 39.20 -0.54 ZionsBancorp ZION 45.43 1.50 NYSE AMER CheniereEnergy LNG CheniereEnerPtrs CQP CheniereEnHldgs CQH ImperialOil IMO 49.28 27.71 26.40 31.62 -0.47 -0.33 -0.42 -0.41 Exchange-Traded Portfolios | WSJ.com/ETFresearch Largest 100 exchange-traded funds, latest session ETF Monday, November 13, 2017 Closing Chg YTD Symbol Price (%) (%) AlerianMLPETF CnsmrDiscSelSector CnsStapleSelSector EnSelectSectorSPDR FinSelSectorSPDR GuggS&P500EW HealthCareSelSect IndSelSectorSPDR iShIntermCredBd iSh1-3YCreditBond iSh3-7YTreasuryBd iShCoreMSCIEAFEETF iShCoreMSCIEmgMk iShCoreMSCITotInt iShCoreS&P500ETF iShCoreS&PMdCp iShCoreS&PSmCpETF iShS&PTotlUSStkMkt iShCoreUSAggBd iShSelectDividend iShEdgeMSCIMinEAFE iShEdgeMSCIMinUSA iShGoldTr iShiBoxx$InvGrCpBd iShiBoxx$HYCpBd iShJPMUSDEmgBd iShMBSETF iShMSCIACWIETF iShMSCIBrazilCap iShMSCI EAFE iShMSCIEAFESC AMLP XLY XLP XLE XLF RSP XLV XLI CIU CSJ IEI IEFA IEMG IXUS IVV IJH IJR ITOT AGG DVY EFAV USMV IAU LQD HYG EMB MBB ACWI EWZ EFA SCZ 10.33 92.68 54.59 69.26 26.12 97.05 81.28 70.82 109.26 104.87 122.73 64.63 55.78 61.78 260.10 182.59 73.48 59.10 108.99 95.22 71.24 51.75 12.28 119.91 87.05 114.58 106.52 70.28 38.95 68.99 61.97 –2.18 –18.0 0.34 13.9 5.6 0.57 –0.57 –8.0 0.15 12.3 0.15 12.0 0.10 17.9 –0.34 13.8 1.0 –0.08 –0.07 –0.1 0.2 –0.08 –0.43 20.5 –0.20 31.4 –0.42 22.4 0.11 15.6 0.23 10.4 6.9 0.18 0.10 15.2 0.9 ... 7.5 0.34 –0.45 16.4 0.33 14.4 0.16 10.8 2.3 0.02 0.6 –0.07 4.0 0.11 0.2 0.02 –0.14 18.8 0.31 16.8 –0.42 19.5 –0.67 24.3 ETF Closing Chg YTD Symbol Price (%) (%) iShMSCIEmgMarkets iShMSCIEurozoneETF iShMSCIJapanETF iShNasdaqBiotech iShNatlMuniBdETF iShRussell1000Gwth iShRussell1000ETF iShRussell1000Val iShRussell2000Gwth iShRussell2000ETF iShRussell2000Val iShRussell3000ETF iShRussellMid-Cap iShRussellMCValue iShS&PMC400Growth iShS&P500Growth iShS&P500ValueETF iShUSPfdStk iShTIPSBondETF iSh1-3YTreasuryBd iSh7-10YTreasuryBd iSh20+YTreasuryBd iShRussellMCGrowth PIMCOEnhShMaturity PwrShQQQ 1 PwrShS&P500LoVol PwrShSrLoanPtf SPDRBloomBarcHYBd SPDR Gold SchwabIntEquity SchwabUS BrdMkt SchwabUS LC SPDR DJIA Tr EEM EZU EWJ IBB MUB IWF IWB IWD IWO IWM IWN IWV IWR IWS IJK IVW IVE PFF TIP SHY IEF TLT IWP MINT QQQ SPLV BKLN JNK GLD SCHF SCHB SCHX DIA Explanatory Notes –0.22 –0.37 –0.44 –0.67 ... 0.15 0.09 0.11 –0.05 0.03 0.02 0.07 0.21 0.27 0.20 0.10 0.09 0.05 –0.01 –0.01 –0.05 0.21 0.09 0.04 0.12 0.38 ... –0.11 0.15 –0.29 0.11 0.11 0.10 46.19 42.91 58.82 310.08 110.74 131.01 143.71 119.48 178.59 146.61 121.67 152.85 200.98 85.96 208.86 149.52 109.03 38.21 113.70 84.13 105.78 124.36 116.33 101.77 153.87 47.13 23.03 36.64 121.31 33.86 62.39 61.73 234.66 e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. Fund NAV Chg %Ret Fund A American Century Inv Ultra 45.11 +0.01 American Funds Cl A 31.84 +0.02 AmcpA p AMutlA p 41.17 +0.03 27.44 +0.02 BalA p 12.90 ... BondA p 62.73 -0.12 CapIBA p CapWGrA 52.22 -0.06 56.83 -0.15 EupacA p 63.50 -0.03 FdInvA p GwthA p 51.54 +0.03 10.37 -0.01 HI TrA p 41.13 -0.06 ICAA p IncoA p 23.35 ... 44.88 +0.02 N PerA p 47.66 +0.10 NEcoA p NwWrldA 66.36 -0.10 SmCpA p 56.05 -0.13 13.03 ... TxExA p 45.32 +0.01 WshA p TotRetBdI 29.3 18.6 13.4 12.3 3.0 11.5 21.0 28.6 18.8 22.6 5.9 14.8 10.1 27.0 32.6 29.0 21.9 5.0 14.9 B 10.87 +0.01 11.22 ... BlackRock Funds A GlblAlloc p 20.22 -0.05 BlackRock Funds Inst EqtyDivd 22.98 +0.01 20.35 -0.05 GlblAlloc 7.78 -0.01 HiYldBd StratIncOpptyIns 9.93 ... Bridge Builder Trust NA ... CoreBond 3.7 4.0 11.2 12.6 11.5 6.9 4.0 NA D Dimensional Fds 5GlbFxdInc 11.01 -0.01 EmgMktVa 30.03 -0.19 EmMktCorEq 22.33 -0.09 IntlCoreEq 14.09 -0.08 19.86 -0.11 IntlVal IntSmCo 21.19 -0.17 23.08 -0.20 IntSmVa US CoreEq1 21.98 +0.01 US CoreEq2 20.83 +0.01 35.70 -0.01 US Small US SmCpVal 37.96 -0.09 US TgdVal 24.74 -0.04 38.88 +0.05 USLgVa Dodge & Cox Balanced 108.46 -0.15 GblStock 13.79 -0.05 13.80 ... Income 45.84 -0.25 Intl Stk Stock 200.14 -0.40 DoubleLine Funds Net YTD NAV Chg %Ret NA ... NA FrankTemp/Franklin A 7.48 ... CA TF A p ... Fed TF A p 11.98 NA ... IncomeA p Edgewood Growth Instituti EdgewoodGrInst 29.53 +0.06 33.0 RisDv A p 60.76 +0.07 FrankTemp/Franklin C NA ... Income C t FrankTemp/Temp A Federated Instl NA ... GlBond A p ... 11.4 Growth A p StraValDivIS 6.40 NA ... Fidelity FrankTemp/Temp Adv 500IdxInst 90.55 +0.09 17.4 GlBondAdv p NA ... 500IdxInstPrem 90.55 +0.09 17.4 500IdxPrem 90.55 +0.09 17.4 ExtMktIdxPrem r 62.18 +0.03 13.3 IntlIdxPrem r 42.87 -0.21 21.5 Harbor Funds SAIUSLgCpIndxFd 13.88 +0.01 17.4 CapApInst 76.21 +0.12 69.17 -0.36 r TMktIdxF r 74.97 +0.06 16.7 IntlInst Harding Loevner TMktIdxPrem 74.96 +0.07 16.7 IntlEq NA ... USBdIdxInstPrem 11.57 +0.01 3.0 Fidelity Advisor I NwInsghtI 33.39 +0.06 25.0 Invesco Funds A Fidelity Freedom 11.23 ... 16.69 -0.01 13.1 EqIncA FF2020 FF2025 14.44 -0.01 14.1 FF2030 18.08 -0.02 16.4 Freedom2020 K 16.69 -0.01 NS John Hancock Class 1 15.92 -0.01 Freedom2025 K 14.44 -0.01 NS LSBalncd 17.09 -0.01 Freedom2030 K 18.09 -0.02 NS LSGwth Freedom2035 K 15.17 -0.02 NS John Hancock Instl 23.95 +0.03 DispValMCI Freedom2040 K 10.66 -0.01 NS JPMorgan Funds Fidelity Invest 39.68 +0.06 MdCpVal L 23.67 +0.02 14.1 Balanc 88.00 +0.04 33.3 JPMorgan R Class BluCh 11.62 ... CoreBond 126.88 +0.23 29.7 Contra ContraK 126.88 +0.23 29.8 CpInc r 10.24 ... 10.1 41.08 -0.22 23.4 Lazard Instl DivIntl 183.34 -0.09 34.0 EmgMktEq 19.50 -0.07 GroCo GrowCoK 183.30 -0.09 34.2 Loomis Sayles Fds 14.14 ... 7.91 ... 3.4 LSBondI InvGB InvGrBd 11.26 ... 3.8 Lord Abbett A 4.27 ... ShtDurIncmA p LowP r 52.56 -0.17 14.7 LowPriStkK r 52.52 -0.18 14.8 Lord Abbett F 4.26 ... ShtDurIncm 106.17 +0.21 23.0 MagIn 109.14 +0.29 37.0 OTC 23.16 +0.01 16.1 Puritn SrsEmrgMkt 21.45 -0.04 36.6 Metropolitan West 10.64 ... SrsGroCoRetail 17.99 -0.02 34.7 TotRetBd ... SrsIntlGrw 16.17 -0.03 26.3 TotRetBdI 10.64 10.01 ... 10.74 -0.05 17.2 TRBdPlan SrsIntlVal ... 3.6 MFS Funds Class I TotalBond 10.64 40.33 +0.04 ValueI Fidelity Selects Biotech r 214.32 -2.39 23.1 MFS Funds Instl 25.24 -0.08 IntlEq First Eagle Funds 60.40 -0.06 11.3 Mutual Series GlbA NA ... GlbDiscA FPA Funds 34.82 ... 8.0 FPACres FrankTemp/Frank Adv NA ... NA Oakmark Funds Invest IncomeAdv E F 5.6 3.3 NA 16.4 NA NA NA NA H 34.5 18.4 NA I 7.5 J Baird Funds AggBdInst CorBdInst NAV Chg %Ret Fund 2.1 27.1 30.5 23.0 21.2 23.9 22.0 15.4 13.2 6.2 2.0 3.9 12.4 8.4 15.8 3.8 20.3 11.7 SPDR S&PMdCpTr SPDR S&P 500 SPDR S&P Div TechSelectSector UtilitiesSelSector VanEckGoldMiner VangdInfoTech VangdSC Val VangdSC Grwth VangdDivApp VangdFTSEDevMk VangdFTSE EM VangdFTSE Europe VangdFTSEAWxUS VangdGrowth VangdHlthCr VangdHiDiv VangdIntermBd VangdIntrCorpBd VangdLC VangdMC VangdMC Val VangdREIT VangdS&P500 VangdST Bond VangdSTCpBd VangdSC VangdTotalBd VangdTotIntlBd VangdTotIntlStk VangdTotalStk VangdTotlWrld VangdValue WisdTrEuropeHdg WisdTrJapanHdg XtrkrsMSCIEAFE L M O 12.8 16.3 MDY SPY SDY XLK XLU GDX VGT VBR VBK VIG VEA VWO VGK VEU VUG VHT VYM BIV VCIT VV VO VOE VNQ VOO BSV VCSH VB BND BNDX VXUS VTI VT VTV HEDJ DXJ DBEF Net YTD NAV Chg %Ret Fund EqtyInc r Oakmark OakmrkInt Data provided by Monday, November 13, 2017 Net YTD 31.9 24.0 20.4 16.8 2.4 24.9 15.5 6.7 16.0 8.7 2.3 14.9 12.4 6.9 14.6 22.8 7.5 2.7 0.5 –0.4 0.9 4.4 19.4 0.4 29.9 13.3 –1.4 0.5 10.7 22.3 15.2 15.9 18.8 Fund Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least $500 million each. NAV is net asset value. Percentage performance figures are total returns, assuming reinvestment of all distributions and after subtracting annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date return. 3-YR%RET is trailing three-year return annualized. Net YTD Closing Chg YTD Symbol Price (%) (%) ETF Nasdaq lows - 85 Mutual Funds | WSJ.com/fundresearch AcaciaComms ACIA AcadiaHealthcare ACHC Amedica AMDA AmCapSeniorFloat ACSF AmTrustFinSvcs AFSI Andersons ANDE AppliedDNASciWt APDNW AquaMetals AQMS AquinoxPharm AQXP ArcadiaBiosci RKDA Atlanticus ATLC AzurRxBioPharma AZRX Biocept BIOC BlackRockCapInvt BKCC CHF Solutions CHFS CMSevenStarAcqnRt CMSSR CPI Card PMTS CapitalaFinance CPTA CheckpointTherap CKPT Chimerix CMRX CoherusBioSci CHRS Compugen CGEN ConsldComm CNSL Criteo CRTO Curis CRIS CytoriTherapWt CYTXW DBVTechnologies DBVT FTD FTD FibrocellScience FCSC ForwardPharma FWP GlobalEagle ENT HenrySchein HSIC HoughtonMifflin HMHC INC Research INCR Iberiabank IBKC IdealPower IPWR Immersion IMMR Infinera INFN InflaRx IFRX InfoSonics IFON iShMSCIQatarCapped QAT iSh1-3YTreasuryBd SHY JasonIndustriesWt JASNW LifePointHealth LPNT LiquiditySvcs LQDT MaidenHoldings MHLD MartinMidstream MMLP MeetGroup MEET Neonode NEON Neuralstem CUR OFSCapital OFS OPKOHealth OPK OrexigenTherap OREX ParkerVision PRKR PAVmedWt PAVMW PerionNetwork PERI PetIQ PETQ Precipio PRPO ProQR Therap PRQR ProteostasisTher PTI RISE Education REDU RamacoRscs METC RedHillBio RDHL RevolutionLight RVLT SabraHealthcare SBRA SalemMedia SALM SearsHoldings SHLD SequentialBrands SQBG ServiceSource SREV Shire SHPG SonusNetworks SONS SynergyPharm SGYP TESARO TSRO Tecogen TGEN TeleNav TNAV TherapixBiosci TRPX TileShop TTS Travelzoo TZOO trivago TRVG TurtleBeach HEAR VandaPharm VNDA VangdSTGovBd VGSH VangdTotalCpBd VTC VicShEMHiDivVol CEY Ziopharm ZIOP Stock 33.86 +0.01 84.56 -0.10 28.51 -0.14 Old Westbury Fds 14.86 -0.02 LrgCpStr Oppenheimer Y NA ... DevMktY IntGrowY 42.56 -0.27 P Parnassus Fds 44.25 +0.16 ParnEqFd PIMCO Fds Instl NA ... AllAsset 10.25 -0.01 TotRt PIMCO Funds A NA ... IncomeFd PIMCO Funds D NA ... IncomeFd PIMCO Funds Instl NA ... IncomeFd PIMCO Funds P IncomeP NA ... Price Funds 97.24 +0.17 BlChip 29.69 +0.02 CapApp 34.71 +0.03 EqInc 69.52 +0.06 EqIndex Growth 70.23 +0.12 HelSci NA ... InstlCapG 39.59 +0.04 19.13 -0.07 IntlStk 15.08 -0.07 IntlValEq 91.54 +0.11 MCapGro 31.39 +0.06 MCapVal NA ... N Horiz N Inc 9.47 ... OverS SF r 11.27 -0.05 NA ... R2020 NA ... R2025 NA ... R2030 NA ... R2035 R2040 NA ... Value 38.75 +0.09 PRIMECAP Odyssey Fds 36.01 +0.14 Growth r Principal Investors DivIntlInst 13.82 -0.07 Prudential Cl Z & I NA ... TRBdZ 11.6 S 3.4 T Schwab Funds 40.42 +0.05 9.0 S&P Sel TIAA/CREF Funds 19.35 +0.01 EqIdxInst IntlEqIdxInst 20.14 -0.08 22.8 Tweedy Browne Fds 28.27 -0.06 GblValue 6.7 V 2.3 VANGUARD ADMIRAL 500Adml 239.10 +0.24 2.3 BalAdml 34.04 +0.02 CAITAdml 11.81 -0.01 CapOpAdml r154.43 +0.06 37.03 -0.12 EMAdmr 2.6 EqIncAdml 76.22 +0.07 2.9 ExtndAdml 81.67 +0.03 3.0 GNMAAdml 10.49 ... GrwthAdml 70.94 +0.08 12.5 HlthCareAdml r 88.13 -0.04 HYCorAdml r 5.90 -0.01 24.6 InfProAd 25.76 ... IntlGrAdml 94.15 +0.01 NA ITBondAdml 11.38 ... ITIGradeAdml 9.77 -0.01 LTGradeAdml 10.53 +0.02 MidCpAdml 184.86 +0.42 332.86 258.33 92.68 63.48 56.17 22.56 164.77 127.54 155.56 97.29 43.87 44.50 57.37 53.44 137.85 151.20 82.62 83.96 87.19 118.63 149.26 106.49 85.36 237.32 79.41 79.63 142.38 81.43 54.82 55.48 132.61 72.14 101.66 64.67 57.94 31.79 0.19 0.09 0.26 –0.03 1.19 0.18 –0.02 0.07 0.01 0.20 –0.39 –0.20 –0.54 –0.41 0.13 0.07 0.12 –0.05 –0.07 0.10 0.21 0.31 0.51 0.12 –0.05 –0.01 0.01 0.01 0.02 –0.45 0.05 –0.15 0.10 –0.40 –0.38 –0.19 10.3 15.6 8.3 31.3 15.6 7.8 35.6 5.4 16.8 14.2 20.1 24.4 19.7 21.0 23.7 19.3 9.0 1.1 1.7 15.9 13.4 9.6 3.4 15.6 –0.1 0.3 10.4 0.8 1.0 20.9 15.0 18.3 9.3 12.7 17.0 13.3 Net YTD NAV Chg %Ret 11.3 MuHYAdml 11.42 -0.01 16.7 MuIntAdml 14.17 -0.01 25.6 MuLTAdml 11.69 -0.01 ... MuLtdAdml 10.95 ... 15.8 MuShtAdml 15.77 PrmcpAdml r135.53 +0.24 NA REITAdml r 120.91 +0.60 22.7 SmCapAdml 68.24 +0.03 STBondAdml 10.41 -0.01 STIGradeAdml 10.66 -0.01 ... TotBdAdml 10.74 ... 13.6 TotIntBdIdxAdm 21.91 TotIntlAdmIdx r 29.79 -0.13 64.56 +0.06 TotStAdml NA 14.09 -0.06 4.6 TxMIn r 39.65 +0.04 ValAdml NA WdsrllAdml 68.72 -0.11 WellsIAdml 65.15 +0.04 NA WelltnAdml 73.59 +0.02 WndsrAdml 78.94 +0.04 NA VANGUARD FDS 26.41 +0.03 DivdGro NA HlthCare r 208.89 -0.10 INSTTRF2020 22.48 -0.02 33.9 INSTTRF2025 22.75 -0.01 13.4 INSTTRF2030 22.94 -0.01 11.8 INSTTRF2035 23.14 -0.01 17.2 INSTTRF2040 23.33 -0.02 31.9 INSTTRF2045 23.47 -0.02 39.16 -0.20 NA IntlVal 33.07 -0.03 35.4 LifeGro LifeMod 26.87 -0.02 25.1 26.78 +0.03 17.7 PrmcpCor SelValu r 33.02 -0.08 21.5 27.10 -0.01 8.0 STAR STIGrade 10.66 -0.01 NA 3.4 TgtRe2015 15.89 -0.01 TgtRe2020 31.54 -0.02 24.3 NA TgtRe2025 18.49 -0.01 TgtRe2030 33.40 -0.02 NA NA TgtRe2035 20.52 -0.01 TgtRe2040 35.33 -0.03 NA NA TgtRe2045 22.19 -0.02 TgtRe2050 35.70 -0.03 15.2 13.56 ... TgtRetInc TotIntBdIxInv 10.96 ... 25.7 26.89 +0.02 WellsI Welltn 42.61 +0.01 25.6 38.72 -0.06 WndsrII NA VANGUARD INDEX FDS 239.06 +0.23 500 ExtndIstPl 201.54 +0.08 SmValAdml 54.80 +0.04 TotBd2 10.70 ... 17.4 TotIntl 17.81 -0.07 64.53 +0.06 TotSt VANGUARD INSTL FDS 34.05 +0.02 BalInst 16.6 DevMktsIndInst 14.11 -0.06 21.7 DevMktsInxInst 22.06 -0.09 81.67 +0.04 ExtndInst 12.9 GrwthInst 70.95 +0.09 10.50 +0.01 InPrSeIn 235.89 +0.23 InstIdx 235.92 +0.24 InstPlus 17.4 InstTStPlus 57.91 +0.05 11.1 MidCpInst 40.84 +0.10 4.8 MidCpIstPl 201.41 +0.47 24.3 SmCapInst 68.24 +0.03 26.8 STIGradeInst 10.66 -0.01 10.74 ... 13.7 TotBdInst ... 13.3 TotBdInst2 10.70 ... 1.9 TotBdInstPl 10.74 ... 24.9 TotIntBdIdxInst 32.88 16.3 TotIntlInstIdx r119.14 -0.50 119.17 -0.49 TotItlInstPlId r 6.0 64.57 +0.06 2.0 TotStInst 39.65 +0.04 39.8 ValueInst 3.6 3.9 8.5 Western Asset 14.6 CorePlusBdI NA ... 7.2 4.5 5.9 2.4 1.3 24.5 6.3 11.5 1.2 2.1 3.1 2.0 23.3 16.7 22.4 11.5 11.3 7.9 11.2 15.0 14.4 16.2 11.6 13.1 14.4 15.7 17.0 17.5 23.3 15.7 12.4 20.7 14.7 15.2 2.0 9.5 11.6 13.1 14.4 15.7 16.9 17.5 17.5 7.1 2.0 7.8 11.1 11.3 17.3 13.3 6.7 3.0 23.2 16.6 11.1 22.5 22.5 13.3 24.9 2.1 17.4 17.4 16.6 14.6 14.6 11.5 2.1 3.1 3.0 3.1 2.0 23.3 23.4 16.7 11.5 W NA For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com Tuesday, November 14, 2017 | B9 THE WALL STREET JOURNAL. BANKING & FINANCE Citigroup’s Credit Card Plans Hit Snag Bank’s stock is up 22% this year, but cracks in a crucial unit stand to complicate the picture BY TELIS DEMOS AND ANNAMARIA ANDRIOTIS One of the bright spots in Citigroup Inc.’s turnaround strategy is starting to lose a little luster. For years, the New Yorkbased bank has steadily expanded its card business, boosting loans and investing heavily despite problems elsewhere that ranged from headaches in Mexico to regulatory problems that lingered after the financial crisis. But now, some cracks in the card business have emerged, raising questions just as Chief Executive Michael Corbat has shored up the bank’s other issues. This summer, the bank lowered its return-on-asset projection for Citi-branded credit cards to at least 2.15% from 2.25%. The seemingly narrow slice of one part of Citigroup’s sprawling empire is getting a lot of attention, in part because credit cards have been a crucial business for a bank that has spent much of its efforts getting smaller and simpler. Citigroup is the largest card lender globally by some measures and is the second-biggest in the U.S. by balances, according to industry tracker the Nilson Report, even as it has cut hundreds of U.S. branches since the financial crisis. Among the factors pressuring the business are more activity on cards that don’t tend to generate as much lending income and consumers’ increasing demand for rewards. “It’s clear that the company has gotten off to a slower-than-expected start” on meeting card-growth goals, Compass Point analyst Charles Peabody wrote in a note. The worries contrast with an overall rise in investor expectations. Citigroup’s stock has risen 22% in 2017, the highest gain among the big U.S. banks. Mr. Corbat has declared restructuring at the Proﬁt Pinch Citigroup credit-card net income* $700 million Credit cards as a percentage of total lending† Citigroup 600 24% Quarterly 500 J.P. Morgan 400 15% 300 Bank of America 200 10% 100 Wells Fargo 0 2014 ’15 ’16 4% ’17 *Citi-branded cards, North America †As of Sept. 30. Source: the companies once-troubled bank over, and in July, it unveiled a plan to return more than $60 billion in capital to shareholders by 2020 through dividends and share buybacks. To sustain that momentum, the bank has made consumer cards a priority. Today, cards make up 24% of Citigroup’s total lending—a far bigger share than its rival big banks, including J.P. Morgan Chase & Co. and Bank of America Corp., which remain focused THE WALL STREET JOURNAL. on mass-market retail banking. While revenue and profits in the U.S. branded-card business haven’t taken off in recent years, the bank’s aim was for its investments to start paying off in the second half of this year. However, in the third quarter, North American revenue from Citi-branded cards fell 1% from a year ago. The bank did increase the unit’s revenue from the second quarter to the third quarter. Its results compare with a July forecast for 3% annual revenue growth through 2020 in the unit. In October, Chief Financial Officer John Gerspach told analysts that “we are seeing slower-than-anticipated revenue growth,” due largely to increases in “the competitive dynamics in the rewards offerings in the U.S.” The bank also has noted heavy volume in card partnerships with big merchants, which has resulted in cards that people tend to use for spending rather than borrowing. Still, Citigroup didn’t change its longer-term growth or return forecasts for the branded-card business. Citigroup has sought to boost growth in part by promoting no-interest card borrowing, a tactic that it has long used. Over the past three years through September, the bank has mailed about 1.9 billion offers in the U.S. for credit cards with zero-percent interest for a promotional period, according to market research firm Mintel Group Ltd. The maneuvers have helped BNY Mellon Picks CFO Egypt Draws Investors in Search of Yield BY IRA IOSEBASHVILI STREET Continued from page B1 age lower than their larger brethren for otherwise identical companies, and so future returns higher. Since the effect was documented by academics in the early 1980s, smaller companies have stopped beating the market. It looks as though CEOs and founders took notice and changed strategy to avoid the higher financing costs that came from being a small company on the stock market. More listed companies chose to sell to rivals to get bigger, and fewer opted for IPOs in the first place. The result is that the average listed company is far bigger than it was, and there are far fewer very small companies, data from René Stulz, director of the Dice Center for Research in Financial Economics at Ohio State University, show. Since 1997, on average 5.6% of listed companies have been bought each year, against just 3.9% in the previous two de- BY JUSTIN BAER MOHAMED ABD EL GHANY/REUTERS One of the most popular emerging-market trades is in a Middle Eastern currency that was shunned by investors just a year ago. Large bond-fund managers such as T. Rowe Price Group Inc. and J.P. Morgan Chase & Co. and other investors have poured money into Egyptian government debt this year, following a sharp drop in the Egyptian pound that made the debt more attractive to foreign buyers. About 60% of the 70 local-currency bond funds tracked by data group eVestment held Egyptian debt at the end of the third quarter, compared with virtually none at the same time last year. A buyer of government bonds denominated in the Egyptian pound can collect around 18% annually on the country’s three-month treasury bill as of late last week, due to moves by Egypt’s central bank, which has increased interest rates sharply over the past year. By comparison, the yield on a three-month U.S. Treasury bill was 1.213% as of Monday. The rush to own Egypt’s bonds, rated six notches below investment grade by Moody’s Investors Service, shows how far investors will go to harvest returns in a world where yields in developed markets remain near historic lows. “Egypt is one of those idiosyncratic stories that everyone is very desperate for these days,” said Denise Prime, comanager of the emerging-market bond strategy at GAM UK Ltd. Her fund holds Egypt’s debt, which it purchased at the beginning of 2017. But some investors fear the trade could reverse suddenly for a variety of reasons, including any rise in political instability, faster-than-expected tightening by major central banks or other developments that could dent appetite for the bank maintain and expand its vast card business. Citigroup in 2015 outbid American Express Co. to win the rights to issue credit cards for shoppers at retail giant Costco Wholesale Corp., adding millions of new accounts and more than $10 billion in loans. But giving up interest for a period has been costly, especially during a period of rising interest rates that ordinarily would boost the bank’s lending revenue. The bank’s aim has long been to dial back these offers, increase interest income and lean on other enticements such as its mobile application features or rewards points. Under global cards head Jud Linville, who joined Citigroup in 2010 from American Express, the bank has invested to boost cards’ appeal. It introduced new proprietary cards such as the Double Cash card, made it easier to spend rewards points online and is adding new mobile functions this year. The goal is “building huge engagement with our customers,” Mr. Linville said in an interview earlier this year. Egypt’s central bank has raised key interest rates by 7 percentage points in the past year. A Cairo open-air market is seen here. Bank of New York Mellon Corp. reshuffled its management Monday as a first step in new Chief Executive Charles Scharf’s bid to put his stamp on the custody bank. BNY Mellon said it named Michael Santomassimo the bank’s finance chief, succeeding Thomas Gibbons. BNY Mellon also divided up its largest business among three managers, including Mr. Gibbons. The restructuring will trigger the exit of Brian Shea, a 34-year company veteran who had overseen some 75% of the firm’s operations. Mr. Gibbons, who served as BNY Mellon’s CFO for the past nine years, will slide over to a new role running a cluster of businesses, including clearing, trading and treasury services, the bank said Monday. The bank also appointed Hani Kablawi as CEO of asset servicing and chairman of Europe, the Middle East and Africa. Francis La Salla was named CEO of issuer services. A familiar name on Wall Street for his previous roles at Visa Inc. and J.P. Morgan Chase & Co., Mr. Scharf succeeded longtime BNY Mellon chief Gerald Hassell in July. The changes eliminate a layer of management between the new CEO and the businesses that make up BNY Mellon’s core servicing arm. “When your senior management is a step closer to the businesses, you’re closer to clients,” Mr. Scharf said Monday. BNY Mellon also added five managers, including Messrs. Santomassimo, Kablawi and La Salla, to its executive committee. The bank also said it would add a head of digital to help lead its technology push. risky investments. Because Egyptian bonds are thinly traded, any bad news that causes many investors to sell at once could overwhelm the market and cause prices to plunge. “The trade is a little bit exhausted,” said Jan Dehn, head of research at Ashmore Group, which owned Egypt’s local currency bonds earlier this year. “I think it’s on its last legs.” Mr. Dehn declined to say whether his firm still had a position in the bonds. Some money managers have been happy to take profits. Jim Barrineau, co-head of emerging-market debt at Schroders, said concerns over high inflation pushed him recently to sell Egyptian localcurrency bonds his firm had invested in earlier this year. Inflation stood above 30% at the end of October. “It was a very good trade,” Mr. Barrineau said. “Better to sell now than…when everyone is trying to get out at once.” Investors began looking at the pound after the currency plummeted 50% following the decision by Egypt’s central bank in November 2016 to scrap a peg of 8.8 pounds to the U.S. dollar ahead of a $12 billion loan from the International Monetary Fund. To support the pound and combat inflation, the central bank has raised key interest rates by 7 percentage points over the past year, making Egypt’s local debt more attractive to yield-hungry foreign money managers. The country’s newly flexible exchange rate, fiscal deficit reductions and other changes won praise from the IMF, which has already disbursed two tranches of its loan, totaling some $4 billion. Egypt’s improving macroeconomic fundamentals and sky-high interest rates made it a tempting proposition for money managers. Foreign capital flows to Egypt hit a record of $21.1 billion in the first half of this year, compared with $7.4 billion in the first half of 2016, data from the Institute of International Finance show. S&P Global Ratings on Friday revised its outlook on Egypt to positive from stable, citing a strengthening economy and the country’s growing foreign-exchange reserves, which rose to $36.7 billion in October from $19 billion a year earlier. Many investors have taken comfort in the central bank’s guarantee to exchange Egyptian pounds for foreign currency for investors looking to cash out, regardless of liquidity conditions. Persistent dollar shortages in past years have occasionally made it difficult for money managers to repatriate profits from the country. Egyptian officials have kept the guarantee in place despite an IMF recommendation to phase out the program, as it plays an important role in attracting foreign capital, the IMF said in a report. “One of the things we wanted to know was whether we can get our dollars back,” said Colm McDonagh, head of emerging-markets fixed income at U.K.-based Insight Investment. He said his firm holds Egyptian bonds, which it purchased in February. cades, a rate that is also much higher than the rest of the world. If big companies can raise equity more cheaply—that is, investors are willing to pay more and so accept a lower future return than on small companies—it makes sense to merge to get bigger. World-wide, though, IPOs remain a popular option. More than 1,450 companies globally have gone public so far in 2017, putting this year on track to become the busiest for new listings since 2007, according to Dealogic data through Friday. Roughly two-thirds of the IPOs were in the Asia-Pacific region, which has roared past the U.S. to become the dominant region for new stock listings. CEOs and CFOs should know more about their company’s prospects than outsiders, so if they have a choice of ways to finance, the one they pick is probably offering a better deal. But the asset class offering the best deal to the company is also the one offering the worst deal to the investor. Plenty of other factors affect return, but if lots of companies choose to finance via IPOs—as in the late 1990s—then stocks are probably overvalued. If they mostly choose to finance via debt—as they did before the subprime crisis—then debt is probably overvalued. For the past few years, bonds have been popular again, suggesting that for the investor, debt is even more expensive than stocks. If companies choose to stay private longer than they did, it is because they can get cheaper money privately. And cheaper equity for companies means lower returns for the private-equity investor. The Incredible Shrinking Stock Market If big companies can raise equity more cheaply, it makes sense to merge. Takeovers aren’t the full story, though. In the past two decades, money has flooded into venture capital and private equity, with buyout funds now sitting on a record $954 billion available for deals, according to Preqin data. T he small-company CEO can choose between an IPO and selling to private funds—and private money is more easily available than ever before. Why bother to list? M arkets working better is good for the economy, but monopoly power isn’t. Big companies have become more dominant, helped by complex intellectualproperty law and regulations that make life tough for new entrants, by the network effects of new technology, by cheaper financing and, some critics allege, by lax antitrust enforcement. Studies show big companies tend to be less innovative and invest less in research, which ultimately hurts growth. Cheap venture finance is great for innovation, but the link from the IPO drought to oligopoly is visible in the Silicon Valley startup: Where once they fantasized about ringing the NYSE bell after listing, now their aim is to sell out to Alphabet or Amazon. Fewer companies are listed in the U.S. than in 1975... ...and the proportion of very small companies* has collapsed. 8,000 60% 7,000 50 6,000 40 5,000 30 4,000 20 3,000 10 1980 ’90 2000 ’10 1980 ’90 2000 ’10 Smaller companies used to beat the market, but haven't outperformed since the early 1980s.† 600% 500 400 300 200 100 0 –100 1930 ’40 ’50 ’60 ’70 ’80 ’90 2000 ’10 *Worth less than $100 million, inﬂation-adjusted †Performance of long-short porfolio Source: Prof René Stulz, Ohio State University (total companies, proportion of small companies); Kenneth French Data Library (performance) THE WALL STREET JOURNAL. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B10 | Tuesday, November 14, 2017 THE WALL STREET JOURNAL. * *** MARKETS Bitcoin Loses 25% in Latest Wild Swing BY STEVEN RUSSOLILLO AND PAUL VIGNA The booming bull market for bitcoin has hit another speed bump. Bitcoin slumped more than 25% in recent days, falling below $6,000 after touching a record just shy of $7,900 last week. A canceled software upgrade, concerns about the coming launch of bitcoin futures and fears of an asset bubble weighed on the cryptocurrency, which is known for sharp swings. On Monday, bitcoin prices regained some of their losses in volatile trading. It traded as high as $6,770, according to CoinDesk, up about 16% for the day, then slid back to about $6,500. Even with the decline, bitcoin is still up more than 500% this year and has a market capitalization of about $100 billion. The latest drop marked the fifth time this year that bitcoin has fallen more than 20% from a recent high, according to research site CoinDesk. Bitcoin traded at about $6,500 late Monday. The recent decline came after last week’s suspension of plans that would have split the digital currency into two competing versions. A group proposing to Choppy Gains Bitcoin has had several 20% drops through its broader surge. Nov. 8 Business group abandons plan to create alternate version of bitcoin. $8,000 Sept. 4 China announces plans to ban ICOs, later prepares to shut down exchanges. 6,000 June 11 Prices hit $3,000 for ﬁrst time, spark proﬁt-taking selloff. 4,000 ANDREY RUDAKOV/BLOOMBERG NEWS Canceled software update and concerns about coming futures hit cryptocurrency 2,000 0 J F M A M Note: As of Monday 5 p.m. ET Source: CoinDesk launch a new version of the currency that would allow for faster trading put off those plans after they were bitterly opposed by a group of bitcoin’s main software developers. Traders also have been jittery about the impending introduction of bitcoin futures. Exchange operators CME Group Inc. and CBOE Global Markets Inc. have announced plans to offer such contracts, which would give Wall Street traders an avenue to bet on bitcoin prices and hedge against volatility, a crucial step in bitcoin’s move into institutional and retail markets. Those plans come with risks: Over the weekend, Thomas Peterffy, one of the J J A S O N THE WALL STREET JOURNAL. world’s most successful derivatives traders, said he was concerned bitcoin derivatives would introduce extraordinary volatility that would be difficult to contain. “For the first time, I am extremely scared,” Mr. Peterffy, founder and chairman of Interactive Brokers Group, told Barron’s, citing concerns about the stability of Wall Street’s smaller clearing firms. Investors who have stuck with bitcoin have been rewarded handsomely. Three years ago, the digital currency was at $300 and six years ago it was at $2. The sharp rise has sparked concerns that the digital currency is mired in one of the biggest financial bubbles of all A bitcoin miner in Russia. Even after its slide, bitcoin’s price is still up more than 500% this year. time. One alternative version of the digital currency called Bitcoin Cash has quickly grown in popularity. Launched in August and created as a split from the original bitcoin, Bitcoin Cash uses a technology that can process more transactions at a given time, translating to lower fees for users. At about $21 billion, it is the third-largest cryptocurrency by market value, according to industry site Coinmarketcap.com. Bitcoin’s backers are still fighting along the lines of the initial schism: Some want bitcoin to have low costs and fast transaction times. Others want to keep the current configuration, which is driving up trans- action fees and bottlenecking payments. This slower network works better if bitcoin is being used as a store of value. Digital currencies like bitcoin are generally open-source software projects, sustained by developers who work on a volunteer basis. That also means any other group is welcome to take the software and create their own version of it. Bitcoin Cash is a copy of bitcoin that is faithful to the original in all but a few respects. There was an initial bout of relief last week, which helped propel bitcoin higher, after the plans for a version of bitcoin that would have somewhat increased capacity were withdrawn. But it just opened the door for Bitcoin Cash’s backers to make a push. The first important marker of this will be a measurement of activity from the “miners”: businesses that process transactions on the network and get paid in newly created coins. A measure of their combined computing power, called the hash rate, has been rising for Bitcoin Cash and falling for bitcoin. Still, the reality is that the original bitcoin has been in use for about nine years and has a community of businesses, developers, and miners around it. Bitcoin Cash has existed for a few months, and, despite its positioning for payments, has few—if any—retail outlets that accept it for that. Treasurys Fall, With Tax Bills In Focus SANDY HUFFAKER/GETTY IMAGES BY DANIEL KRUGER Mattel’s shares surged 21% on news of a takeover bid from rival Hasbro, whose shares also moved higher Monday. Mattel’s booth at Comic Con in San Diego in July. Stocks Rise as Corporate Action Picks Up BY AKANE OTANI AND MARINA FORCE U.S. stock indexes inched higher following a flurry of corporate news. The gains came after stocks slipped last week when investors became concerned about the prospects for tax cuts. The Dow MONDAY’S Jones Industrial MARKETS Average edged up 17.49 points, or less than 0.1%, to 23439.70. The S&P 500 added 2.54 points, or 0.1%, to 2584.84, and the Nasdaq Composite rose 6.66 points, or 0.1%, to 6757.60. Mattel surged $3.02, or 21%, to $17.64—the stock’s biggest one-day percentage gain since 1987—after The Wall Street Journal reported Friday that Hasbro made a takeover offer for the company in a deal that would unite the two biggest U.S. toy makers. Hasbro added 5.38, or 5.9%, to 96.83. Qualcomm rose 1.92, or 3%, to 66.49, after the chip maker said its board rejected a $105 billion takeover bid from Broadcom. General Electric fell 1.47, or 7.2%, to 19.02, after the company lowered earnings targets for 2018 and said it would cut its annual dividend by $4 billion. It was the stock’s lowest close since 2012 and its biggest percentage decrease since 2009. Meanwhile, investors said they would continue to watch developments on a tax-overhaul effort in Washington. Hopes for tax cuts helped bank stocks, bond yields and the dollar jump after the November 2016 election, but many of those moves have faded this year as investors have contended with uncertainty around policy changes. “I think we will eventually see some tax bill, but the timing is highly uncertain as the Senate bill is really different” from the one in the House, said Zhiwei Ren, managing director at Penn Mutual Asset Management. Later this week, analysts say they will be monitoring comments from central bank leaders, with European Central Bank President Mario Draghi and Federal Reserve Chairwoman Janet Yellen both set to speak Tuesday. Analysts also will be watching for the latest consumerprice index reading due Wednesday, with the Federal Reserve widely expected to increase rates in December. The Stoxx Europe 600 fell 0.7% and notched its fifth consecutive session of declines, weighed down by losses in shares of banks and insurance companies. At the midday break in Tokyo Tuesday, Japan’s Nikkei was up 0.3% after logging its largest one-day percent decline since April on Monday. Australia’s S&P ASX 200 was down 0.9% on weak commodity stocks. Driven by Deals Mattel shares jumped following reports that Hasbro made a takeover offer for the company. Performance Monday 25% 20 15 Mattel Hasbro 10 5 One-minute intervals 0 10 11 noon 1 2 3 4 Source: FactSet THE WALL STREET JOURNAL. Chinese Government-Bond Yields Rise to Three-Year High BY SHEN HONG SHANGHAI—Chinese government-bond yields rose to a three-year high, after a selloff in U.S. Treasurys that further worried investors already concerned about Beijing’s debt. The yield on China’s benchmark 10-year bond rose 0.08 percentage point Monday to 3.98%—its highest since October 2014. Bond yields and prices move in the opposite direction. The world’s third-largest bond market has been under pressure since early in the year, when Beijing raised short-term interest rates to discourage borrowing by speculators. The perception that reducing risk has overtaken spurring growth as policy makers’ priority has been reinforced in recent weeks as the central bank has declined to inject large amounts of cash into the market—though on Monday it did pump in 150 billion yuan ($22.59 billion), its biggest injection since the 394 billion yuan of Oct. 13. Concerns that a U.S. tax overhaul would widen the budget deficit sent the yield on the 10-year Treasury note up 0.07 percentage point on Friday—its biggest rise since September—to 2.397%. Higher returns on U.S. government paper make Chinese bonds less attractive by comparison. Also weighing on the Chinese bond investors’ sentiment: a strong Chinese stock market. The benchmark Shanghai Composite Index hit a 22month high Monday. At close to 4%, the yield on 10-year Chinese government bonds is now some distance above those on other major economies’ comparable debt— notably the 0.41% yield on 10year German bunds and the 0.05% on 10-year Japanese government bonds. Foreign investors, mainly central banks and sovereignwealth funds, have been more bullish on Chinese bonds: At the end of October, their holdings stood at a record 1.09 trillion yuan. U.S. government bonds edged lower as investors assessed the status of negotiations on the ReCREDIT publican taxMARKETS overhaul plan in Congress and awaited inflation data due this week. The benchmark 10-year Treasury yield rose to 2.400% from 2.397% Friday. Yields rise as bond prices fall. Bond yields have risen in recent sessions amid uncertainty created by the possible impact of Republican House and Senate tax-overhaul plans on economic growth and the budget deficits. Adding to the confusion, Senate Republicans’ proposal to overhaul the tax code diverges in key ways from a plan that advanced through a House committee. Senators would delay a corporate tax rate cut until 2019, forgo estate tax repeal, and eliminate the entire state and local tax deduction. Compared with the House bill, those changes and others freed up hundreds of billions of dollars that could enable senators to avoid tough and politically painful choices. “We thought there would be volatility around tax reform,” said Dan Heckman, senior fixed-income strategist at U.S. Bank Wealth Management. “We’re starting to see that.” Bond investors are also trying to grasp the potential impact from inflation data this week—producer prices Tuesday and consumer prices Wednesday. The consensus estimate for the consumer-price index calls for 2% headline inflation and 1.7% excluding food and energy costs. The Federal Reserve has fallen short of its 2% inflation target on its preferred measure, personal-consumption expenditures. AUCTION RESULTS Here are the results of Monday's Treasury auctions. All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference between that price and the face value. 13-WEEK AND 26-WEEK BILLS 13-Week 26-Week $130,618,187,700 $118,653,475,200 $42,000,346,200 $36,000,021,800 $617,837,700 $476,040,200 $210,000,000 $200,000,000 99.686556 99.312444 (1.240%) (1.360%) 1.261% 1.388% Coupon equivalent 39.17% 48.66% Bids at clearing yield accepted 912796NS4 912796PG8 Cusip number Applications Accepted bids " noncomp " foreign noncomp Auction price (rate) Both issues are dated Nov. 16, 2017. The 13-week bills mature on Feb. 15, 2018; the 26-week bills mature on May 17, 2018. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | B11 * * * * MARKETS Pound Weakens as U.K. Faces Tumult Jitters around British leadership and Brexit talks ramp up the volatility in sterling Political Currency Over the past two years the British pound and U.K. markets have been driven by major electoral events and the developments in the country's exit from the European Union. How many dollars one British pound buys Whatever sterling does next, it is likely to be a big move. The pound fell by as much as 1% against the dollar on $1.55 By Olga Cotaga, Saumya Vaishampayan and Mike Bird 1.45 Monday on concerns about the state of British politics before recovering some of the losses, one of many recent bouts of volatility for this currency. But many market players have been holding off from making big decisions as they wait for political clouds to lift. That could change soon. Almost a year and a half after the Brexit vote, Britain has made little progress in moving to all-important trade talks with the European Union. The two sides have been bickering over divorce issues such as how much the U.K. will continue to pay to Brussels. It should become clear at an EU meeting next month whether trade negotiations can begin. “Sterling could either get a big bounce, or it could turn quickly into the biggest short of 2018” if investors believe Brexit talks are getting nowhere, said Viraj Patel, a foreign exchange strategist at ING. In a recent note, Commerzbank said traders and investors had yet to focus on the December summit. So the risk of EU leaders concluding not enough progress has been made to proceed isn’t priced into the pound, leaving sterling vulnerable to falls, the bank said. ”It’s going to be crucial how quickly we can move into the trade talks,” Mr. Patel said. Email: firstname.lastname@example.org Dividend Cut Isn’t What You Think A dividend cut is generally bad news for a company. But not necessarily the bad news investors think it is. General Electric cut its dividend by half on Monday, saying it was a move it needed to make to preserve cash for restructuring efforts. Investors worried that it was really a sign that the company, which also sharply cut its 2018 earnings forecast, would have lower earnings for years to come. The conventional wisdom is companies cut dividends when they think profits are doing down and raise them when they think earnings will be higher. The only problem is that studies have repeatedly found that dividend cuts and increases aren’t a good predictor of the direction of future earnings or cash flow. But new research finds dividend moves are a good signal of something else. Economists Roni Michaely, Stefano Rossi and Michael Weber examined U.S. financial statement data from 1963 to 2015 and found that dividend cuts tend to lead to higher volatility in cash flows, and that dividend increases portend greater stability. The bigger the dividend cut, the more choppy future cash flows tend to be. And this makes sense: If results get lumpier, management can’t be as certain that they are going to have the money they want to cover both their needs and opportunities. All else equal, a company with more volatile earnings is worth less than one with stable earnings. Stable earnings are something that GE used to be known for. Its dividend cut may count as recognition that those days are in its past. —Justin Lahart June 23 ‘Leave' wins U.K. referendum on EU membership Jan. 17, 2017 Mrs. May argues ‘No deal [with the EU] is better than a bad deal’ 1.50 Oct. 5 Prime Minister Theresa May’s speech to Conservative Party conference 1.40 Sept. 22 Mrs. May’s speech suggests transition period in leaving EU June 8 The governing Conservative party loses majority in parliamentary elections 1.35 1.30 Feb. 20, 2016 Prime Minister David Cameron calls referendum on U.K. membership of the EU 1.25 1.20 2016 ’17 Net bets pound will rise Yield on 10-year British government bond 2.00% 20,000 contracts 0 1.75 –20,000 1.50 –40,000 1.25 –60,000 1.00 –80,000 0.75 –100,000 0.50 –120,000 2016 ’17 2016 ’17 THE WALL STREET JOURNAL. Sources: FactSet (currency); CFTC (net bets); TradeWeb (yield) Sterling could rise to its year-to-date high of around $1.37 if Britain does make some progress at December’s meeting, said Roger Hallam, currency chief investment officer at J.P. Morgan Asset Management. If the U.K. fails to do so, the pound could fall to as low as $1.25, Mr. Hallam said. Late Monday in New York, the pound was at $1.3115, compared with $1.3191 on Friday. It fell 0.4% against the euro and 0.6% against the Japanese yen. U.K. government-bond yields fell along with the pound, closing at 1.331% from 1.341% Friday. Bond yields fall when prices rise. The market moves were triggered by a weekend report in the Sunday Times that 40 members of Parliament had agreed to sign a letter of no confidence in Prime Minister Theresa May. Just eight more MPs are required for a formal leadership challenge to begin, according to the report. Mrs. May’s government has been seen by investors as being in a weak position since she failed to win a majority government in June’s election. Any change in leadership could hamper the talks in Brussels and potentially lead to a new leader less interested in compromising with the EU. HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY GE’s Light Bulb Finally Goes On So far, so good for General Electric’s new leadership. But the hardest parts of a big turnaround are still in the future and will take time to yield results. Chief Executive John Flannery continued to sound the right notes during Monday’s investor day by vowing to trim the company’s sprawling business portfolio and focus on higher-margin units. His decision to halve the quarterly dividend, while painful, means the company will be much more likely to cover its obligations from the free cash flow it generates. He acknowledged that complexity, a longtime gripe of investors, has hurt the company and pledged to simplify the business metrics it reports. Promising to emphasize equity, rather than cash, in executive compensation is another good idea after poor shareholder performance and embarrassing revelations of corporate excess. And Mr. Flannery seems to grasp how important it is to Grounded GE’s adjusted earnings per share $2.0 1.5 1.0 0.5 0 2011 ’12 ’13 ’14 ’15 ’16 ’17* ’18* *Midpoint of company forecast THE WALL STREET JOURNAL. Sources: the company, FactSet (forecast) change certain aspects of the company’s culture. One slide in the company presentation vowed to improve the company’s “say/do ratio.” Yet the biggest task, simplifying the business portfolio and turning around the prolonged share-price meltdown, will be far easier said than done. Shares fell sharply once again Monday and are down about 40% this year, touching their lowest level since 2011. Changing GE’s mix of businesses is, of course, nothing new; former CEO Jeffrey Immelt was a serial reshaper of the portfolio. The difference here is that Mr. Flannery has laid out a clear plan by which investors can judge his progress. He will have to proceed quickly, though, while maintaining a delicate touch. The more sensible approach to the company’s financial obligations comes with the side effect of lean times in the near future. Management projections for adjusted earnings of $1 to $1.07 a share in 2018 were below the FactSet analyst consensus of $1.15. The company was discussing profit of $2 a share as recently as this summer. What is more, GE plans to sharply cut its capital spending next year to $3.4 billion. That will improve short-term free cash flow, but it runs the risk of limiting growth prospects. Investor skepticism about Mr. Flannery’s turnaround plan certainly is understandable given the stock’s recent history. GE’s shares rocketed higher when the company announced the exit from the finance business in 2015; investors who bought the stock on that basis have been punished severely. At 19 times next year’s depressed earnings guidance, the stock isn’t particularly expensive, but winning investors back will take far more doing than saying. —Charley Grant A no-deal outcome between Britain and its biggest trading partner also would reduce forecasts for economic growth and likely cause the Bank of England to move more slowly in tightening monetary policy, which in turn would put pressure on the pound. Higher rates typically boost yields, which make the region more attractive to investors looking for better returns, benefiting the local currency. For now, the pound is too cheap to sell, according to Valentin Marinov, head of G-10 currency strategy at Crédit Agricole. In the week to Oct. 31, speculators held a small net bullish position on the pound, according to data from the U.S. Commodity Futures Trading Commission, with 1,245 more long than short contracts. As recently as April, investors were deeply pessimistic about sterling, with more than 100,000 more short than long contracts on the currency. There are some silver linings for the pound: Sterling could get some support from continuing investment flows, for instance, some investors say, whether there is a deal or not. Foreign direct investment in the U.K. has been falling this year, but asset managers remain net buyers of the country’s assets. Though Hermes Investment Management, with £30.8 billion ($40.6 billion) of assets under management, has reduced its overall exposure to the U.K. stock market since Brexit, it continues to buy shares in those companies that generate most of their revenue abroad. “We’re quite long term, so what we try and do is ensure we’re not highly concentrated on a single binary outcome,” said Louise Dudley, portfolio manager at Hermes Global Equities. —Jason Douglas and Laurence Norman contributed to this article. WSJ.com/Heard OVERHEARD After a hiatus of more than six years, the Singapore Exchange reinstated its daily one-hour lunch break Monday, coinciding with midday breaks on Hong Kong and mainland China exchanges. Singapore scrapped its longstanding lunch hour in March 2011 to increase competitiveness with peers, but trading volume dried up during what were normal lunch hours anyway. Patrick Mohr, head of execution consulting at Instinet, has calculated that noon to 1 p.m. is the slowest hour of the trading day, with just over 5% of daily volume. Lunch hours are still sacrosanct in many countries across Asia. In 2012, hundreds of brokers in Hong Kong protested when the Hong Kong stock exchange cut its onetime twohour midday trading break down to the current 60 minutes. Singapore brought back its lunch break in response to traders lobbying hard for its return, Mr. Mohr said. “They’re passionate about their lunch.” U.S. Natural-Gas Bonanza With China Isn’t a Done Deal Thanksgiving isn’t here yet, but it’s already Christmas in Alaska—and West Virginia and Texas. The source of the good cheer: big natural-gas deals announced in China during President Donald Trump’s state visit last week. The headline figures are impressive: a $43 billion pipeline and liquefaction project in Alaska, $84 billion for shale gas and chemicals in West Virginia, and a memorandum on gas exports for Texasbased Cheniere Energy. That sounds like a lot of money and a lot of gas, and it would be if all these nonbinding agreements metamorphose into real brick- Burning Brighter Natural-gas prices $20 a million BTUs 15 10 Asia 5 U.S. 0 2007 ’09 ’11 ’13 ’15 ’17 Source: IMF and-mortar projects. That, however, is unlikely. Building liquefied naturalgas plants is a notoriously expensive and lengthy proposition, one reason a 2012 study found the cost of the Alaskan project might actually be as high as $65 billion. And because the Asian gas market is forecast to be oversupplied until the early 2020s at least, and LNG projects are so risky, companies have an incentive to frighten off potential competitors with splashy announcements with big partners. If the Alaskan project goes through, it will compete with Cheniere, which in turn might compete with Russian gas supply to China, which is also under negotiation. Of course, many of these multibillion-dollar deals will never happen, trapped forever in the Upside Down. Chinese investors consid- ering plowing their billions into Alaska have the cautionary tale of Australia to consider. Terminals greenlighted there during the height of the commodities boom nearly all ran massively overbudget. That is causing huge problems for Aussie exporters now facing Asian gas prices trading in a range of $6 to $9 a million British thermal units, or MMBtu, down from over $15 in 2015. The Alaskan project, meanwhile, would produce at a cost of about $6 to $7 a MMBtu, including shipping and tax breaks, according to a presentation by Alaska Gasline Development, the U.S. partner on the deal. Even assuming Asian prices are higher by the time the project would come online in the mid-2020s, that doesn’t leave a lot of room for error. Cheniere, which already ships some cargoes to Asia, might be better placed; it said in 2016 that its margin to Asia would be as much as $2 a MMBtu, even with Asian gas prices at just $7. So, keep an eye on gas prices and on whether any of these contracts evolve into actual investment over the next 12 to 24 months. The U.S. is well-placed to become a significant gas supplier to China. But the game is really just beginning. —Nathaniel Taplin For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B12 | Tuesday, November 14, 2017 THE WALL STREET JOURNAL. THE MONOLITHIC VIEW OF EMERGING MARKETS INVESTING IS OBSOLETE. At PGIM, we see things differently, unbundling emerging markets to identify the trends driving alpha. We see opportunity in the leap into the digital era with ﬁntech and e-commerce; in trade and travel surging between emerging markets; in a rising middle class projected to spend $33 trillion by 2030.1 And every day, our 1,100 investment professionals around the world seek out such opportunities.2 Partner with PGIM to see the investable implications across emerging market sectors and themes. Get our perspective at pgim.com/EM The Global Investment Management Businesses of Prudential FIXED INCOME | EQUITIES | REAL ESTATE | ALTERNATIVES | PRIVATE DEBT 1 Ericsson, June 2016; Brookings Institute, July 2012; PGIM Real Estate, February 2017. 2 Data as of 6/30/17. © 2017 Prudential Financial, Inc. (PFI) and its related entities. PGIM Inc. is the principal asset management business of PFI. PGIM is a trading name of PGIM Inc. and its global subsidiaries. Prudential Financial, Inc. of the United States is not afﬁliated with Prudential plc, which is headquartered in the United Kingdom. The PGIM logo and the Rock design are service marks of PFI and its related entities, registered in many jurisdictions worldwide. Alpha indicates the performance, positive or negative, of an investment when compared against an appropriate standard, typically a group of investments known as a market index. This information is not intended as investment advice and is not a recommendation about managing or investing assets. Investing is subject to investment risk, including the loss of the principal amount invested. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com JOURNAL REPORT | BIG ISSUES Follo The E w xperTuesday, November 14, 2017 | R1 ts An O n THE WALL STREET JOURNAL. © 2017 Dow Jones & Company. All Rights Reserved. SQUARING OFF Conv line e DETA rsation I LS , R2 We invited advocates on each side of six crucial energy issues to make their best case. Read their debates here and join the conversation online. Does Nuclear Power Have a Robust Future In the U.S.? Here’s one sign that nuclear energy has been struggling: Operators shut down six reactors in recent years before their licenses expired, and announced plans for several other early closings, according to the Energy Department. Reasons given include competition from natural gas, burdensome regulation and market structures. Only new state subsidies can prevent more closings, plant operators have said. Still, nuclear plants produced almost 20% of total U.S. electrical output in 2016, and 63% of carbon-free electricity. Faced with global warming, many agree nuclear offers the most efficient renewable alternative to carbon-based fuels. Meanwhile, the Trump administration has promised to help the industry with incentives and reduced regulation. So, will nuclear lead the way, or won’t it? Exelon Corp. last year dropped plans to close its Clinton, Ill., nuclear plant after the state enacted subsidies to help keep the plant open. JOHN DIXON/THE NEWS-GAZETTE/ASSOCIATED PRESS YES It’s Competitive And Necessary BY RICH POWELL THE FUTURE OF U.S. nuclear power is bright—and nonnegotiable. A robust civilian nuclear sector is mandatory for the U.S. to remain a major geopolitical, economic, military and environmental leader. After decades of policy neglect, Washington is finally addressing what is both a national and global necessity and a tremendous opportunity. Bipartisan political support is growing to reform new reactor licensing and improve tax incentives for new nuclear facilities, led in Congress by clean-energy advocates as well as national-security and energy-reliability hawks. The Trump administration has taken bold action to support nuclear energy, including expanding federal financing for the two reactors being built in Georgia and proposing that regulators change the way electricity is priced so that nuclear and coal-fired plants can earn more based on plant resiliency. Market pricing reform would be an important step in helping to restructure power markets and bring an end to the closures of reactors seen in recent years. Current markets undervalue the greater reliability of nuclear energy in the face of natural disasters—true resilience likely comes with greater capital cost. New plants would also be tremendously aided by proposals for improved tax incentives backed by the White House that would benefit deployment of nearly 4 gigawatts of advanced nuclear power. Some don’t believe in a nuclear future because of the low cost of natural gas. Gas is Mr. Powell is executive director of the ClearPath Foundation, a nonprofit that promotes conservative clean-energy solutions. He can be reached at email@example.com. certainly cheap right now, but most vertically integrated utilities don’t want to rely on a single fuel source, especially one with historically significant price swings. There is also nothing fundamentally expensive about nuclear. Much of the current additional capital cost is due to years of inactivity and resulting lack of experience and standardization—gaps that deny projects the kinds of knowledge transfer than can lower costs through repeated construction of the same design. China and South Korea have been able to drive out costs through scale and repeated construction experience. Skeptics also point to falling renewable costs and stalled growth in demand for electricity as an argument against investing in nuclear. But wind and solar, because of their intermittent character, require grid-scale energy storage, and that is expensive. And despite low electricity growth, there will be need in the generation market to replace many kinds of retiring plants in the coming years. In fact, this just opens the door for advanced technologies, particularly smaller reactor designs. Several U.S. entrepreneurs are developing Please see NUCLEAR YES page R2 NO It Is Up Against Too Many Forces BY JASON BORDOFF A DECADE AGO, nuclear power appeared to be on the verge of a renaissance in the U.S. The Energy Information Administration projected U.S. nuclear power generation would grow 13% from 2005 to 2020. The Nuclear Regulatory Commission was preparing to receive dozens of applications to build new reactors, the first in decades. Toshiba bought Westinghouse for $5.4 billion and had plans to install 45 new reactors world-wide by 2030. I believe a strong nuclear-power sector would benefit the U.S. But the truth is, the in- Steady State Nuclear power's electricity output in the U.S. has been nearly ﬂat for the past decade but is projected to edge down as natural gas and renewables rise. U.S. net electricity generation from selected fuels: 2,500 billion kilowatt-hours Projected 2,000 Natural Gas 1,500 Renewables 1,000 Coal Nuclear Power 500 Petroleum 0 1980 ’90 2000 ’10 ’20 ’30 ’40 Note: Assumes Clean Power Plan remains in effect. Without CPP, coal and natural gas won't diverge as sharply; generation from nuclear and other fuels shown would be little changed. THE WALL STREET JOURNAL. Source: Energy Information Administration dustry is in crisis—and the signs don’t look good for it turning around. In the past five years, six reactors (at five plants) have been closed, and operators have announced plans to shut down several more. The list is likely to grow, as more than half of America’s nuclear plants are reportedly losing money. Moreover, all plans to build new reactors have been scrapped, save for two in Georgia, and their future is uncertain without major federal support. Westinghouse, the designer of the reactors there, is in bankruptcy proceedings. And the Energy Information Administration now projects the share of nuclear in our electricity mix to fall by nearly half through 2050, to 11% from a current 20%. Even that outlook may be optimistic. China, meanwhile, has several dozen nuclear plants in development. What happened? First, and most important, the shale revolution has delivered natural-gas prices far below what had been expected, undermining the competitiveness of nuclear power in deregulated markets. Second, electricity demand, which back in 2005 had been expected to grow nearly 2% a year, instead has been roughly stagnant, a result of increased efficiency and slower economic growth. Third, renewable-energy costs have fallen far more steeply than most projected. Fourth, the lack of a meaningful price on carbon means that the cost of power from fossil fuels doesn’t reflect its full cost to society. Finally, public support of nuclear power has waned. Building new reactors is made even more challenging by the very costly and complex regulatory approval process. Even plants with new reactor designs intended to be safer and less expensive to operate—like the one in Georgia, and one abandoned in South Carolina—have run into unexpected problems and large cost overruns. U.S. firms lack the equipment and expertise to build nuclear plants after not doing so for decades. And the U.S. nuPlease see NUCLEAR NO page R2 Mr. Bordoff is a former senior director with the National Security Council and special assistant to President Barack Obama. He is now a professor in international and public affairs and the founding director of the Center on Global Energy Policy at Columbia University’s School of International and Public Affairs. Email: firstname.lastname@example.org. INSIDE Should the U.S. limit exports of natural gas? R2 Do the states have a role in making climate policy? R3 Should governments require utilities to make the electric grid more stormproof? R4 Will electric vehicles replace gas-powered ones? R5 Will new tariffs hurt the U.S. solar industry? R6 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. R2 | Tuesday, November 14, 2017 JOURNAL REPORT | BIG ISSUES Should the U.S. Limit Exports of Natural Gas? President Donald Trump in June announced to the world an age of “energy dominance” by the U.S. More drilling for oil and gas and new incentives for nuclear energy are part of the Trump administration’s plans to enlarge the already huge U.S. footprint in increasingly YES Exports Raise Prices In the U.S. and Hurt Manufacturing BY PAUL CICIO YEARS AGO, Congress decided that if natural gas were to be exported to nonfree-trade-agreement, or NFTA, countries, it would have to be in the public interest. But it can’t possibly be in the public interest to export as much natural gas as the Energy Department has approved for the next few decades: an amount roughly equal to two-thirds of all of our domestic demand last year. Low-cost, plentiful natural gas has been a critical contributor to the U.S. economy for years. Inexpensive natural gas has played a major role in the revival of manufacturing in this country. The big increase in exports that the gas industry and the Trump administration want will pressure supplies and increase the price in the U.S., as buyers overseas bid up prices—posing a significant long-term risk to the U.S. economy. Plus, gas resource estimates are highly speculative and subject to significant economic and political risk long term. When Congress passed the Natural Gas Act, which says that the Energy Department can’t approve exports to NFTA countries without it being in the public interest, the message was clear: The U.S. economy as a whole is a priority over exports to NFTA countries. But last year, according to the Energy Department, some 56% of U.S. LNG exports were shipped to 13 NFTA countries. Such shipments don’t constitute fair trade, nor do they follow the president’s “America First” policy for U.S. manufacturers. Shipping our LNG to NFTA countries rewards them for not having freetrade pacts with the U.S. and undermines our competitive global energy markets. Another part of the plan: more exports of natural gas. The U.S. has become a major player in international natural-gas markets in recent years. Improved drilling techniques, including hydraulic fracturing, or fracking, along with technological developments that ability to secure bilateral fair-trade agreements. NFTA countries buying our natural gas are often the same countries that subsidize their manufacturers and apply import tariffs to prevent U.S. manufacturers from exporting products into their country. Increasing LNG exports is damaging to the economy when prices increase to global levels, undermining our manufacturing competitiveness and jobs. Even a study sponsored by the Energy Department to justify its export approvals concluded that increased LNG exports resulted in higher natural-gas and electricity prices, decreased wages, capital and indirect tax income, and created negative impacts to manufacturing competitiveness and jobs. Gas producers, exporters and shareholders are the winners, and everyone else loses. Australia shows what can happen when LNG exporters reach full export potential. Exporters in Australia contracted for so much of its natural gas that prices increased threefold to levels equal to what foreign LNG buyers were paying. Manufacturers’ competitiveness was severely damaged and jobs were affected. Exporting LNG isn’t a big job creator. The U.S. Bureau of Labor Statistics says that from 2010 to 2016, the oil-and-gas industry created only 22,600 direct jobs, while the manufacturing sector created 820,000. Significant job creation attributable to natural gas can only be achieved if the gas is consumed in the U.S. If it is exported, the countries buying the gas will get the job-creation benefits. Linking our biggest, most affordable energy source more closely to international markets will mean increasing exposure of U.S. consumer prices to global volatility, price shocks and speculative international trading. The Energy Department should define public interest and complete an analysis of proposed LNG exports that includes long-term economic risk assessment. Then it should cancel NFTA approvals that aren’t in the public interest, and establish a consumer safety valve to ensure that exports won’t impose economic harm on the U.S. Mr. Cicio is president of the Industrial Energy Consumers of America. He can be reached at email@example.com. Trade Balance Domestic Harmony? As production rose with the shale boom, the U.S. needed less natural gas from abroad and has recently been a net exporter. Monthly U.S. natural-gas net imports (imports minus exports): U.S. natural-gas production and consumption NO Increasing Exports Will Have a Positive Economic Impact BY ANNA MIKULSKA U.S. EXPORTS of liquefied natural gas are on the way to becoming a vital part of global trade in natural gas. The Energy Information Administration predicts LNG exports will more than triple by 2025, driven by growing international demand, record U.S. natural-gas production and added liquefaction capacity. Demand for LNG is poised to grow particularly in Asia, including China, Japan and other countries that don’t share a freetrade agreement with the U.S. Meanwhile, some U.S. politicians and manufacturers have repeatedly asked the Energy Department not to issue new approvals for LNG exports to the so-called NFTA countries. But the Trump administration is continuing the Obama-era policy of embracing LNG exports as a way to stimulate the U.S. economy and facilitate broader aims of U.S. diplomacy. And there are good reasons for doing so. To start, the U.S. already exports many manufactured goods, services, oil, refined products, chemicals and agricultural goods to NFTA countries. There is no reason to treat LNG differently. Shipping LNG is a commercial transaction, not a reward. If the U.S. doesn’t export its LNG, the NFTA countries will find other suppliers, including Australia, Qatar, Russia, Mozambique and possibly even Iran. Advocates of limiting exports are concerned about depleting domestic supply and triggering an increase in domestic prices, to the detriment of U.S. manufacturing competitiveness. But even if exports were to grow to six times their 2016 levels by 2018, they will constitute will raise costs for natural-gas customers within the U.S., including manufacturers. Industry sources, meanwhile, say that natural-gas exports will create more jobs at home and help the U.S. compete globally with other exporters of natural gas, such as Russia and Iran. only about 4% of total U.S. production. And to achieve these levels, U.S. producers must remain competitive in global markets—in other words, domestic prices of natural gas have to remain relatively low. Though it is true that increasing LNG exports will push domestic prices up, the impacts are modest. A 2015 Energy Department study on the macroeconomic impact of increasing LNG exports finds that LNG exports have a net positive impact on U.S. GDP. And U.S. industries reliant on natural gas grow under all LNG export scenarios, even if at a slightly lower rate. Indeed, the U.S. natural-gas abundance has already had a profound impact on gas-intensive industries, and long-term investments are proceeding in parallel with continuing construction of LNG export capacity. The American Chemistry Council estimated that shale development as of July has triggered 310 chemicalindustry projects (completed, started or projected). These projects are associated with an expected $185 billion in new capital investment, 464,000 direct and indirect jobs, and $26 billion in new tax revenue through 2025. Critics might look at selective years and narrow job descriptions to try to argue that LNG exports won’t contribute much to job growth. But more than 61,000 jobs were created in the extraction of oil and gas between 2004 and 2017. And if one looks at Bureau of Labor Statistics for extraction, drilling and support activities in the oil-and-gas industry, more than 162,000 jobs were created between 2007 and 2012. If restrictions were imposed on LNG exports, only a few domestic manufacturers would gain a small advantage, while the broader benefits to the rest of the economy would be lost. Restrictions would weaken the U.S. position in bilateral and multilateral trade discussions and reduce any foreign-policy benefit that could be derived from a growing U.S. role in the global energy market. Dr. Mikulska is a nonresident fellow in energy studies at Rice University’s Baker Institute for Public Policy. She can be reached at firstname.lastname@example.org. 80 billion cubic feet/day 78 76 400 billion cubic feet 74 300 70 Consumption 72 Production 2015 200 have boosted the industry’s ability to liquefy natural gas for shipping have fueled both a global boom and a glut in natural gas. The fast-growing global market for liquefied natural gas, or LNG, that has arisen makes U.S. supplies more exposed to international prices than before. Some fear this 2016 2017 ’18 Where It’s Used 0 –100 Electric power Industrial 36% 28% LINDSEY JANIES/BLOOMBERG NEWS Natural-gas consumption by sector in the U.S., 2016 100 Residential 16% 11% 9% Commercial Other* –200 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 *Lease and plant fuel consumption, pipeline and distribution, vehicle fuel THE WALL STREET JOURNAL. Source: Energy Information Administration Nuclear Yes Continued from the prior page advanced nuclear-energy technologies that are smaller, more nimble and even have the potential to be cost-competitive with natural gas. One of these, a startup called Oklo Inc., is designing a microreactor it says could operate for 10 to 20 years at a time with low overhead. It’s less than 1% the size of a traditional reactor and could be perfect for quick deployment to areas such as Puerto Rico, which saw its grid devastated by a hurricane. Bill Gates-backed TerraPower also has potential. It is working with Southern Co. to develop TerraPower’s Molten Chloride Fast Reactor, a design that potentially has significant cost benefits compared with conventional generators. There is also NuScale Power LLC and its small modular nuclear reactor, which can be scaled anywhere from 50 megawatts to 600 megawatts of capacity and which will likely be operating commercially by 2026. The goal for each of these companies is to export its technologies. With forecasts of as much as $10 trillion in global investment in low-emissions power technology over the coming decades, major investors and technology developers are paying attention. The Energy Department re- cently announced that it will target advanced nuclear technologies for funding with the same highly successful approach it has used through its research program known as Advanced Research Projects Agency-Energy, or ARPA-E. While the nuclear-energy industry has suffered setbacks over the past few years, the promise of advanced reactors and the importance of nuclear energy to our national security will attract the financial resources, the political clout and the policy reforms necessary to win out in the long term. A thriving U.S. nuclear industry isn’t a “nice-to-have.” It’s a must-have. And it will happen again. Follow The Experts >> This Journal Report doesn’t stop here. Join us online with The Experts—a group of industry, academic and cultural thinkers who weigh in on the latest issues raised in this and future reports. Read what they have to say at WSJ.com/Experts. Posts featured throughout the week include: “Why Government Energy-Efficiency Programs Sound Great—but Often Don’t Work,” by Sam Ori, the executive director of the Energy Policy Institute at the University of Chicago. “It’s Time to Close the ‘Carbon Loophole,’ “ by Kate Gordon (@katenrg), a fellow at the Center for Global Energy Policy at Columbia University, and Matthew Lewis, a strategic communications adviser focused on climate and energy issues. “Why the U.S. Shouldn’t Sell Off the Strategic Petroleum Reserve,” by Jason Bordoff (@JasonBordoff), professor of professional practice in international and public affairs and founding director of the Center on Global Energy Policy at Columbia University. Cheniere Energy’s terminal in Sabine Pass, Texas, began exporting liquefied natural gas last year. Nuclear No Continued from the prior page clear industry lacks standardization of designs and equipment, further escalating costs. While small, modular reactors hold promise to bring down costs and address safety and proliferation concerns, the Trump administration proposes slashing government investment in energy R&D. Meanwhile, shale-gas production is set to outstrip demand, keeping prices low, and renewable costs keep falling. The prospects for government policies that could support nuclear, from a carbon tax to a long-term waste-dis- The Journal Report welcomes your comments—by mail, fax or email. Letters should be addressed to Lawrence Rout, The Wall Street Journal, 4300 Route 1 North, South Brunswick, N.J. 08852. The fax number is 609-520-7256, and the email address is email@example.com. THE JOURNAL REPORT For advertising information please contact Katy Lawrence at 212-416-4119 or firstname.lastname@example.org posal solution, seem remote. New legislation may be in the works, but passage seems unlikely at present given congressional dysfunction and opposition. Federal financing is a necessary condition to revive U.S. nuclear power, but even with increased federal support, it is far from certain the plant in Georgia will be built. The project is only about one-third complete, costs have skyrocketed, and the planned start date has been pushed back many years. Energy Secretary Rick Perry’s recent order to the Federal Regulatory Commission to consider guaranteeing recovery of costs to struggling coal and nuclear plants would prop up those industries, but it faces numerous hurdles at FERC, in the courts and with a long list of stakeholders who have filed comments in opposition. The decline of nuclear is cause for concern. Nuclear is the largest source of carbonfree electricity in the U.S., but retiring plants are mostly replaced by gas and coal. Additionally, a robust nuclear-energy sector promotes U.S. leadership in international nonproliferation efforts, supports our national defense requirements, and facilitates the expansion of nuclear globally with high safety, security and environmental standards. Left to market forces alone, however, the outlook for U.S. nuclear power is grim. REPRINTS AVAILABLE FULL PAPER: The entire Wall Street Journal issue that includes the Big Issues: Energy report can be obtained for $10 a copy. Order by: Phone: 1-800-JOURNAL Fax: 1-413-598-2259 Mail*: Big Issues: Energy Dow Jones & Co. Attn: Back Copy Department 84 Second Ave. Chicopee, Mass. 01020-4615 JOURNAL REPORT ONLY: Bulk orders of this Journal Report section only may take up to six weeks for delivery and can be obtained for $5 for one copy, $2 for each additional copy up to 50, and 25 cents for each copy thereafter. Order by: Email: JournalReports@dowjones.com Mail*: Dow Jones LP Attn: Mailing Operations Dept. 84 Second Ave. Chicopee, Mass. 01020-4615 REPRINT OR LICENSE ARTICLES: To order reprints of individual articles or for information on licensing articles from this section: Online: www.djreprints.com Phone: 1-800-843-0008 Email: email@example.com *For mail orders, do not send cash. Checks or money orders are to be made payable to Dow Jones & Co. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | R3 JOURNAL REPORT | BIG ISSUES Do States Have a Role in Making Climate Policy? When scientists from 13 U.S. federal agencies issued a report on climate change earlier this month that drew a direct connection between human activity and global warming, it was a reminder of the turmoil that has surrounded environmental issues since President Donald Trump took office. YES States Can Mitigate Damage Done by the Federal Government BY ARTHUR VAN BENTHEM GIVEN THE STATE of affairs in Washington, D.C., states should adopt their own policies to promote renewable energy and limit the emissions of greenhouse gases. Ambitious governments in China, Europe and elsewhere are ramping up pressure on their companies to become world leaders in green energy, electric vehicles and low-carbon technologies, in an effort to seize the golden opportunity that comes with the rise of the global green-tech market. Meanwhile, the U.S. federal government is backing away from those same policies, rejecting the Paris accord and hitting the brakes on fuel-economy rules and efforts to reduce carbon emissions under the Obama administration’s Clean Power Plan. Several states, spearheaded by the governors of California, New York and Washington, have pledged to fill the void in leadership by adopting their own strict climate policies. In principle, having a single federal policy is cheaper for industry and less prone to unintended consequences. But an unwieldy patchwork of 50 different state policies is an extremely unlikely outcome of state initiatives. Much more likely, state efforts will eventually spur demand for strict federal policies, and operate at a regional level in the meantime. But they also could be short-circuited if the Clean Power Plan is replaced with weak federal regulation of carbon emissions that would preclude stricter state rules, or if the waiver that allows California to set vehicle standards that are tougher than federal regulations isn’t extended. It is imperative that states be allowed to proceed unhindered. If they are, here are the The Trump administration has rejected the international Paris climate accord, calling it a job-killing pact that impinges on U.S. sovereignty. It also has moved to repeal the domestic Clean Power Plan, following up on the president’s pledge to boost the energy industry by cutting regulation. In response, several state governors have pledged to take the initiative on climate change by crafting their own strict emissions standards and pursuing the development of renewable energy with renewed vigor. Supporters say such actions not only will benefit the environment but also will spur the devel- highlights of what is likely to happen: two sets of vehicle regulations, as we have now for electric vehicles and local air pollution, and broad regional cap-and-trade systems to reduce emissions from electricity generation and heavy industry, like the ones already in place among the nine states in the Northeast or the California-Quebec-Ontario market. There would likely be two vehicle standards because under the Clean Air Act, California was granted a unique federal waiver to adopt stricter-than-federal vehicle policies, an acknowledgment of the state’s severe smog problems. Other states have a choice—follow California or stick with the federal standard. About a dozen states, representing some 40% of the U.S. population, have followed California’s lead on tailpipe emissions and electriccar regulations that exceed federal standards. On fuel economy, when California set a tougher standard and 14 states followed, it led to an agreement among the Obama administration, states and auto makers on stricter federal standards. In exchange, California abandoned its own rule. The same could happen with regional cap-and-trade systems, which could be linked or subsumed under a federal trading system if they spur demand for a uniform approach. The governors of CaliforPlease see CLIMATE YES page R4 NO It Won’t Work—and This Isn’t the States’ Role, Anyway BY OREN CASS MOST STATE-LEVEL efforts to reduce greenhousegas emissions cannot help being incoherent and ineffective. Consider Vermont, which has established a socalled renewable portfolio standard requiring the use of 75% renewable energy by 2032. That may be a laudable aspiration, but it ignores how energy markets work. Vermont recently shut its emissions-free nuclear power plant, which accounted for the majority of the state’s electricity generation. Without renewable capacity to fill the resulting hole, the state began importing more electricity from other states, generated primarily with emissions-producing natural gas. Ironi- State Action Energy legislation introduced and enacted/adopted by the 50 states and D.C. in 2016 Introduced Enacted/adopted Renewables Efﬁciency 107 Transportation 111 Security 321 267 74 Climate 221 95 Fossil fuels Grid/transmission 673 254 213 101 42 188 142 THE WALL STREET JOURNAL. Source: National Conference of State Legislatures opment of the green-technology industry. But critics say that such state initiatives have a record of being ill conceived and ineffective, and that policies that run counter to the federal government’s stand on the climate in international talks are beyond the rightful scope of state governments. cally, it had already banned fracking, the technology that extracts the natural gas that now keeps its lights on. Meanwhile, rather than rapidly developing its own renewable resources, the state is leading a nationwide backlash against wind power: Vermont added no wind capacity during 2013-16. The issue featured prominently in last November’s gubernatorial race, which saw an anti-wind Republican beat a pro-wind Democrat by almost 10 points. And, just last month, state legislators approved strict noise limits that will further limit development. Vermonters can confidently reject nuclear, coal, gas and wind from the comfort of their warm and well-lit homes because shirking responsibility for their energy supply has few consequences. They can draw electricity from a regional power grid and import energy-intensive goods by exhaust-belching truck. Their 75%-renewable goal presumes the availability of someone else’s nonrenewable plants to keep the lights on when the wind isn’t blowing and the sun isn’t shining. Those plants will be operating affordably only if other states remain committed to a conventional grid. But Vermont is not alone. Twenty-nine states have renewable portfolio standards, and lawmakers in both Massachusetts and California have recently proposed 100%-renewable mandates. If everyone tries to reach their goals, and more states feel compelled to join and out-green each other, the grid will fall apart. This is not only irresponsible, but also fails to address climate change. Since nationwide carbon-dioxide emissions peaked in 2007, states with renewable portfolio standards have achieved smaller reductions, on average, than states without them. And even significant state-level achievements would mean little. The Obama administration acknowledged that its Clean Power Plan for cutting emissions in every state would not have meaningfully affected global temperatures. The reality of climate change is that the overwhelming majority of future greenhousegas emissions will come from the developing world. American emissions cuts are justified primarily as a means of showing leadership. But the symbolic actions of former Vermont Gov. Pete Shumlin and his colleagues are not Please see CLIMATE NO page R4 ALIGNING TARGET DATE STRATEGIES WITH YOUR DC PARTICIPANTS’ GOALS TAKES FOCUS That’s why we raise the formula for investing to the human power SM In a world of algorithms and computer-driven decision making, we rely on our global research teams and collaborative culture to help deliver better outcomes for your clients. See how we’ve elevated investing for 90 years at mfs.com/TDF For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. R4 | Tuesday, November 14, 2017 JOURNAL REPORT | BIG ISSUES Should Governments Require Utilities to Make the Electric Grid More Stormproof? When storms hit and the power goes out, people want to know one thing: “When will my lights be back on?” The answer to that question could increasingly depend on decisions being made right now by utilities and regulators about YES Utilities Must Go Beyond ‘Hardening’ The Current Grid BY JENNIE C. STEPHENS AS CLIMATE change accelerates, extreme weather events are becoming more frequent and more destructive. Our existing grid infrastructure is ill-prepared for this, and state public utility commissions aren’t adequately promoting sufficient grid resilience investment for the public good. More regulation is needed to ensure that as utility companies stormproof their grids, they are innovating for the good of society, and not just maximizing shareholder returns. Current efforts to stormproof the grid are inadequate because they focus too much on “hardening” the current grid and restoring power rather than investing in innovations that would prevent power outages in the first place. Stormproofing the grid is conventionally thought to include putting some transmission and distribution lines underground, expanding efforts to prune trees close to poles and wires, and reinforcing or replacing towers and poles with stronger, steel structures. Smart-grid investments, too, have helped utilities minimize the duration of power outages by helping to locate and restore power more quickly. But utilities must do more. They must be required to make additional smart-grid investments that encourage households and buildings to be self-sufficient and “island” during a storm so that when the centralized grid is damaged (which inevitably will happen no matter what degree of hardening takes places) power outages are minimized. And the best way to do this is for regulators to require utilities to install more distributed renewable energy throughout the grid. what investments are necessary to stormproof our power grids, and the extent to which efforts by the utility companies to strengthen the grid should be regulated. Policy makers in Washington are putting new emphasis on grid reliability and resil- Given the benefits of distributed renewable power, we have to think outside the box and expand our vision and expectations of electric utilities. If we stay with the same old assumptions and keep trying the same old tactics, we will increase grid vulnerabilities. Investing in innovations that accelerate more distributed renewable generation is critical to stormproofing the grid for the future. A grid designed for distributed renewable power is inherently more resilient to storms than the current grid system. Renewable generation is modular and flexible, and when coupled with the potential of islanding technology and microgrids, when destructive storms do damage, the grid’s modularity allows for fast, segmented recovery. More distributed renewable generation builds backups into the system. It creates networked redundancy, spreading out risks and reducing the potential for cascading failures. The tragedy in Puerto Rico, where Hurricane Maria effectively destroyed the grid, is an opportunity to rebuild with distributed renewable design. After disruption, rather than recovering by reinstalling the same technology, regulators should require utilities to be prepared to upgrade and innovate. Requiring utilities to make grids more resilient by adopting more distributed, renewable energy is not easy, but regulatory change is essential. Consider solar panels, which can continue to provide power to buildings on which they are installed, even if other lines are down. Many utilities still aggressively resist distributed solar developments. Regulators need to take a stronger stand in requiring utilities to accelerate distributed renewable power. We are losing precious time. The longer we tell ourselves that existing public utility commissions’ plans and regulations are sufficient, and that electric utilities are already adequately stormproofing the grid, the more harm will come to our communities. Dr. Stephens is the dean’s professor of sustainability science and policy at Northeastern University, associate director of Northeastern’s Global Resilience Institute, and coauthor of “Smart Grid (R)Evolution: Electric Power Struggles.” Email: firstname.lastname@example.org. and best technologies are deployed. But others say that instead of more regulation, there needs to be better coordination between industry and regulators on both what needs to be done and who will pay for it. iency. This year’s rash of hurricanes and the damage done to grids in places like Florida and Puerto Rico have given the debate new urgency. Some people say new regulations are necessary to see that the proper investments NO Government and Utilities Must Keep Working Together BY PAUL STOCKTON ELECTRICITY companies are already making a huge effort to bolster their infrastructure. They don’t need more regulation. Instead, industry and government leaders need to build consensus on how best to prepare for the storms to come and on how the utilities should recover the costs of those investments. Resilience spending by utilities is massive and on the rise. In 2016 alone, the electricpower industry spent more than $52 billion on modernizing and strengthening the grid. These investments have doubled in the past decade. Moreover, in close coordination with federal and state regulators, electricity companies focus this spending on especially cost-effective improvements. Burying some lines and other infrastructure helped protect electrical systems in Irma and other recent hurricanes. More electricity companies are hardening their systems by replacing wood poles with steel or concrete ones. Florida Power & Light has been replacing old poles with more hurricane-resistant ones at the pace of 16,000 a year. No protection is perfect, however, which is why a big part of the resiliency effort is also focused on strengthening the utilities’ ability to quickly respond and restore power when outages do occur. Electricity companies nationwide, for example, are investing in smartgrid technologies that enable them to locate and repair storm-induced damage faster. Such investments paid major dividends during recent storms. Companies affected by Hurricane Irma restored electricity within six days to 93% of the 7.8 million customers who lost power. Additional investments in grid resilience are under way as well. All of this progress has occurred within the context of the extensive state and federal regulations that already exist. State public utility commissions decide whether to approve the infrastructure investments proposed by electric companies, and determine the rates companies can charge customers to pay for such investments. At the federal level, the electricpower industry also must comply with mandatory reliability standards. Other types of government initiatives are essential to combat climate change and the challenges it creates. The electric-power industry has reduced greenhouse-gas emissions, and has cut CO2 emissions by nearly 25% from 2005 to 2016. Government policies should support additional measures. But electricity companies already are rapidly incorporating clean energy into the power mix. At the end of 2016, more than 70% of solar generation and nearly all wind generation was installed by electricity companies. They don’t need government rules to prod them— they are already leading the way. What is needed is a fair way to apportion the costs of maintaining the energy grid for all customers linked to it, including those who rely on solar, wind and other intermittent sources of power. Distributed and renewable generation, however, will only help stormproofing if those technologies are engineered to survive catastrophic weather events. In some regions, those approaches make sense. Elsewhere, hardening traditional infrastructure, and building redundant power feeds that can rapidly restore power, will offer more cost-effective options. New regulation to stormproof the grid is unnecessary in either case, and no substitute for the cooperative efforts between regulators and the power industry already happening. Dr. Stockton is managing director of the economic and security advisory firm Sonecon LLC. His clients include the Edison Electric Institute. He was formerly the assistant secretary of defense for homeland defense and Americas’ security affairs. He can be reached at email@example.com. Going Dark | Power outages in the U.S. Number of outages Number of people affected 4,000 30 million Outages by cause, 2016 PCT. NUMBER Weather/trees 33% 3,500 25 Faulty equipment/ 24% human error 3,000 2,500 2,000 1,279 925 20 Vehicle accident 12% 15 Planned 5% 189 Animal 4% 169 1,500 10 1,000 483 JOE SKIPPER/REUTERS Theft/vandalism 0.3% 13 5 500 Overdemand 0.1% 3 0 0 ’14 ’15 ’16 2012 ’13 ’14 Source: Eaton Blackout Tracker Climate Yes Continued from page R3 nia and New York recently floated the idea of linking the two existing carbon markets. Those who criticize states for overreaching and moving contrary to federal policy should consider that state climate initiatives seem to fit seamlessly with the Environmental Protection Agency’s stated goal to return power to the states under Administrator Scott Pruitt. The EPA has applied that philosophy selectively, aiming to relieve states that have a limited appetite for environmental action from federal regulations, by backing out of the Clean Power Plan, but explicitly leaving open the possibility of denying California future requests for waivers on vehicle standards. Then there is the criticism that states’ efforts to promote renewable energy sources are far more expensive than continued reliance on nonrenewable sources for affordable, reliable power. That, too, doesn’t hold water. The costs of renewables are falling spectacularly, and setting goals for their adoption will foster further innovation in battery storage technologies. The move to renewables is inevitable, and other countries have already proven they can run their power grids with far more solar and wind than the U.S. Finally, letting the states drive policy is the only serious option to put the U.S. back on track in the global green-tech race. The U.S. is at serious risk of losing its dominant position in this multitrillion-dollar and fast-growing market. For China and Europe, this is an unprecedented opportunity to run away with valuable patents, jobs and export markets. Just like our competitors, we need a sup- ’15 ’16 Unknown 21% 818 THE WALL STREET JOURNAL. portive government that is willing to enforce policies to keep us at the cutting edge of green innovation. Now that the federal government has given up American leadership on climate, it is time to pass the baton to the states and let them pressure Washington into correcting a costly economic mistake. Mr. van Benthem is an energy economist at the Wharton School of the University of Pennsylvania. Email firstname.lastname@example.org. Hurricane Irma cut power to nearly two-thirds of Florida electricity customers in September. Climate No Continued from page R3 going to lead developing nations away from their pursuit of economic progress. Nor is it the role of state leaders, no matter how displeased with President Trump’s rejection of the Paris climate accord, to offset or undermine our national government’s negotiating position on the international stage. Cali- THOMAS PETER/REUTERS 2012 ’13 Jerry Brown of California is one of several governors pushing climate policies as the feds back off. fornia Gov. Jerry Brown is plainly incorrect when he defends his climate talks with China by saying California is a “separate nation.” No one, presumably, would countenance governors opposed to the Iran nuclear agreement traveling to Qatar to coordinate continued sanctions against the Iranian regime. States will sometimes advance an economic, rather than environmental, rationale for their renewable-energy policies—boosting a promising industry. That strategy makes no more sense here than in any other industry, where politically motivated efforts at market distortion would be rightly recognized as foolhardy. If renewables are as economically attractive as their proponents claim, then government mandates should not be necessary to spur investment and deployment. Conversely, state policy makers do neither their consumers nor their fledgling industries any favors when they mandate the purchase of things that the market doesn’t want. A strong case exists for funding precommercial research and development in a variety of speculative technologies, renewable energy included. But that already exists and has bipartisan support at the federal level. States can supplement such efforts in their own universities. If they are looking for other ways to act on climate, they can encourage responsible urban planning and build infrastructure that will be resilient against stronger storms and higher seas. But they should limit their empty political gestures to ones that damage neither the nation’s energy markets nor its foreign policy. Mr. Cass is a senior fellow at the Manhattan Institute for Policy Research. He can be reached at email@example.com. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. NY Tuesday, November 14, 2017 | R5 JOURNAL REPORT | BIG ISSUES BY MICHAEL TOTTY ELECTRIC VEHICLES seem to be on a roll. Several countries, including Britain, France and India, have said they want to end sales of gasoline and diesel cars and light trucks in less than 25 years. Auto makers are following a l o n g — Ford, General Motors and Volvo all have ambitious plans Tony Seba for electric vehicles. Yet electric models accounted for less than 1% of cars sold in the U.S. last year and only a bit more than 1% of those Kate Gordon on the road world-wide. The Wall Street Journal asked three experts for their predictions on the future of electric vehicles: Tony Seba, an auNawar Alsaadi thor and entrepreneur; Kate Gordon, senior adviser at the Paulson Institute, a think tank focused on U.S.-China relations and sustainable economic growth; and Nawar Alsaadi, an author and principal at investment-advisory firm Semper Augustus Capital. Here are edited excerpts. What’s next and when? WSJ: Tony, how soon do you think electric vehicles will replace gas and diesel ones? MR. SEBA: By 2030, 95% of U.S. automobile miles traveled will be in on-demand, autonomous electric-vehicle fleets, in a new business model called transport as a service. This disruption isn’t going to be one where individuals simply trade in their gasoline or diesel vehicles for electric vehicles. Both gasoline/diesel vehicles and the individual ownership of automobiles will be disrupted. By 2030, 60% of light-duty vehicles are expected to be owned by fleets that provide transport-as-aservice—think electric, autonomous versions of Uber, Lyft or Didi—and only 40% to be individually owned. However, since fleet vehicles will drive 100,000 miles a year apiece, they will contribute 95% of the total miles driven in the U.S., while individuals will only contribute 5% of the miles. Also, the total number of vehicles in the U.S. will shrink by 80%, because individuals will stop buying cars for themselves and opt for these services instead. The day autonomous vehicles are approved, the per-mile cost of autonomous electric vehicles will be one-tenth that of a new car, because electric vehicles last 500,000 miles and are being designed to last at least 1 million miles. The cost of operating autonomous electric vehicles will be as little as one-quarter that of even a paid-off gasoline car. MR. ALSAADI: It is noteworthy that autonomous electric vehicles are required for electric vehicles to dominate. This speaks to the fact that the current generation of electric vehicles can’t compete with invehicles ternal-combustion unless they are integrated with a new business model. The technology to offer such a transportation model remains experimental; the financial viability of such a business model, assuming the technology matures, has yet to be proved; and the cultural acceptance of such a transportation model remains questionable. The biggest obstacle for electric vehicles’ wide adoption is their failure to address an actual problem from the driver’s point of view. Electric vehicles have less range, lower residual value, higher cost— and this includes fuel cost— slow charging time, and are adversely impacted by cold or hot weather, among other issues. In 1917, electric vehicles represented 38% of the U.S. car fleet; there is a reason why they are at 1% today. Internalcombustion cars offer a moreviable transportation option. Addressing a need WSJ: Nawar, do you think elec- tric vehicles will ever replace those with internal-combustion engines? MR. ALSAADI: For something to replace something else, it needs to address an existing deficiency, solve a problem or at least offer the same service at a lower cost. Electric vehicles fail on all these measures. In a free-market dynamic, electric vehicles as they are have no realistic chance of replacing internal-combustion cars anytime soon. A common argument by the electric-vehicle camp is that the price of electric vehicles, especially the cost of the battery, will decline enough in 10 to 15 years to make them competitive with internal-combustion cars. The cost of the battery is 50% mechanical, hence the decline in the price of the battery including assembly will not fall as quickly as for the cells themselves. As electricvehicle sales increase, subsidies for electric vehicles will be phased out. This will cancel out if not eliminate totally the reduction in battery prices over the next 10 to 15 years. Electric vehicles are unlikely to be cost-competitive with internal-combustion cars in the near to medium term. Electric vehicles will still need to address inherent problems with range, battery performance in cold/hot weather, charging time and charging infrastructure. Having said that, electric cars could and will gain 5% to 15% market share in the 2030s, mainly due to regulation, aspirational sales, innovation, and improvements in cost and performance. Internal-combustion-car manufacturers are not ignoring the threat. Innovation in fuel efficiency and reduced pollution continue, enhancing internal combustion’s appeal and longevity, as well as extending the yardstick electric vehicles must beat. I don’t see electric vehicles replacing internalcombustion cars under any reasonable time frame. However, the future is infinite, and such switching may very well take place beyond the 2050 time horizon. MS. GORDON: I am all in favor of electric vehicles, and I do believe that their market is going to grow exponentially, especially with China and India putting in new electric-vehicle mandates and incentives, and driving down the costs dramatically as a result. However, replacing the current vehicle fleet with an electric-vehicle fleet—even if fewer people are driving, as Tony notes—is in large part a matter of individual owner economics. The majority of Americans drive the cars they can afford, and “affordability” is about upfront cost, not cost over the period of ownership. Americans are actually holding on to their cars longer since the 2008 recession; in fact, the share of cars 11 to 20 years old in the U.S. vehicle fleet increased by 33% between 2008 and 2012. Those with older cars often just let them run down, and then buy from a neighbor or friend. The secondhand market will increasingly include hybrids and more-efficient cars, thanks to fuel-economy standards, and we’ll see the fleet slowly become more efficient and more electric. But this won’t be a sea change—especially in low-income rural areas, where people are most dependent on their vehicles today. We don’t have a “free-market dynamic”—we have a world in which countries with impressive economic and market power, like China, have acknowledged climate change and are mandating EV sales as a result. China combines that policy push with the ability to manufacture at speed and scale. China’s policy will push this transition faster than it would have otherwise happened. and mainstream analysts made when the first iPhone came out in 2007: Why would anyone want to buy a $600 smartphone when they can buy the $100 Nokia? The smartphone was a superior product with a lot of functionality beyond making a phone call. Electric vehicles are similarly a superior product to internal-combustion vehicles. The electric drive train is superior in acceleration, power, etc. The Tesla Model S was named the Motor Trend Car of the Year as far back as 2013. Consumer Reports named it the best car ever made. One-tenth the cost of charging per mile, one-tenth the cost of maintenance, 500,000-mile life vs. 140,000 to 200,000 for an internalcombustion vehicle. Some electric-vehicle companies are making the million-mile electric vehicle. You can charge JEFF CHIU/ASSOCIATED PRESS Will Electric Vehicles Replace Gas-Powered Ones? Tesla’s Model S, shown in production in Fremont, Calif., was Motor Trend’s Car of the Year in 2013. anywhere. You can charge your house with your car or your car with your house. There are two ways in which electric vehicles can/will disrupt the market. No. 1: The replacement of the internalcombustion vehicle by the electric vehicle. By 2020, consumers will be able to buy an electric vehicle with the performance of today’s Porsche for 10% to 20% less than the median new car in America. So Please see EV page R6 Equity investment totals have reached $66 trillion worldwide. In the U.S. alone, equity markets have grown more than 180% since 2009. With that much at stake – for individuals as well as institutions – mutual funds, retirement funds and endowment funds need a way to manage the risks of stock market fluctuations. CME Group gives investment professionals the tools they need to address market exposure. This is how the financial industry can offer investors the right balance between risk and reward. This is how the world advances. Learn more at cmegroup.com/finance. Policy Role WSJ: Kate, how soon do you think before we see electric vehicles replacing gas and diesel vehicles? MS. GORDON: I think electric vehicles will replace internal-combustion vehicles as new-vehicle sales by maybe 2030. I think the entire turnover of the fleet won’t happen for at least another 10 years. Both will take significant policy action, including regulation, which will be subject to political whims. MR. SEBA: Analysts today make the same mistake that experts CME Group is a trademark of CME Group Inc. The Globe logo is a trademark of Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners. Copyright © 2017 CME Group. All rights reserved. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. R6 | Tuesday, November 14, 2017 JOURNAL REPORT | BIG ISSUES Will New Tariffs Hurt the U.S. Solar Industry? YES They Could Impede Demand and Bring Retaliatory Tariffs BY JEFFREY BALL SOLAR POWER is undergoing a stunning revolution, plummeting in price and surging in popularity. That price drop is due partly to technology, partly to government subsidies and mostly to the efficiencies of globalization. The surest way to encourage solar’s global growth is to let that globalization proceed—not to block it with tariffs. Tariffs already have hurt solar in the U.S., and more tariffs would do more damage. The U.S. government has ruled repeatedly that China’s solar manufacturers are selling products in the U.S. at prices so low—made possible by government subsidies so high— that they violate trade rules. So, as global solar costs tumble, driven largely by manufacturing scale in China, the U.S. has built a tariff wall against Chinese solar imports. Now the Trump administration is set to decide whether to slap new tariffs on crystalline solar cells and modules imported from China—this time because U.S. trade officials have concluded Chinese competition is significantly harming U.S. manufacturers. Though it might seem politically expedient to pile on more protectionist bricks, the economically smart—and environmentally preferable—decision would be to tear down the wall. Whether the tariffs are justified is a legal question. But their practical effect is clear. They’ve eroded U.S. solar manufacturing where it used to be globally competitive: the production of polysilicon, the building block for solar cells. That’s because China, in response to the U.S. tariffs on Chinese cells and modules, imposed tariffs on U.S. polysilicon. U.S. makers of solar panels, Suniva Inc. and SolarWorld Americas Inc., petitioned the commission for tariff relief. Those companies are hoping to avoid the fate of the many U.S. producers of solar products that have been driven out of business by low-cost imports from China, the world’s leading solar Between 2010, before tariffs were imposed, and 2017, the U.S. share of global production of crystalline solar cells and modules, never large, actually has fallen, to 0.8% from 2.2% for cells and to 1.7% from 2.1% for modules, according to data-analysis firm IHS Markit. The U.S. share of global polysilicon output has plummeted, to 11.3% from 29.1%. Raising the tariffs could do more harm than good. It could prod some foreign cell and module makers to open U.S. plants. But it could squeeze U.S. makers of other solar products—by inducing other countries to impose retaliatory tariffs and, more fundamentally, by raising solar-power prices for U.S. consumers, impeding U.S. solar demand. That could crimp both the sizable U.S. solar-installation industry and a promising clean-energy source. U.S. solar policy shouldn’t seek to prop up domestic manufacturing that wouldn’t be viable without tariffs. It should seek to make solar power—which has enjoyed juicy subsidies—cost-efficient for the U.S. and the world. A Stanford University study of the global solar industry that I led concluded earlier this year that the U.S. can be a competitive solar manufacturer—but only in certain segments of the industry that leverage U.S. comparative strengths, and assuming a still-prominent Chinese manufacturing role. Those areas include products for U.S. use that are big or heavy, making them expensive to import; products for export that are energy-intensive to make and thus benefit from cheap U.S. natural gas; and the initial production of innovative new products that leverage U.S. R&D excellence. Some contend foreign solar manufacturing imperils U.S. energy security. They’d do better with this surgical strategy for an economically sustainable U.S. solar industry than with the blunt hammer of tariffs. Solar, now only about 1.5% of global electricity, will need deeper cost cuts to become a truly meaningful energy source. Tariffs don’t make solar cheaper. It’s time for a smarter solar strategy. Mr. Ball is scholar-in-residence at Stanford University’s Steyer-Taylor Center for Energy Policy and Finance, and the former environment editor of The Wall Street Journal. He can be reached at firstname.lastname@example.org. Solar Powers Soaking Up the Rays Production of photovoltaic cells in selected countries, in thousands of megawatts Top solar photovoltaic markets by generating capacity, in thousands of megawatts 2016 China Taiwan Malaysia S. Korea 2010 2016 Japan Germany U.S. 0 10 20 30 40 50 Source: International Energy Agency, Trends 2016 in Photovoltaic Applications; RTS Corp. EVs Continued from page R5 the electric vehicles will be cheaper to buy, more powerful, 80% to 90% cheaper to fuel, and 90% cheaper to maintain. Electric vehicles will continue to drop in cost so that by 2025 all new vehicles will be electric. This is a slower disruption because it’s a 1 to 1 substitution of the existing car fleet. No. 2: The replacement of car ownership by transport as a service—individuals stop buying new cars altogether, both electric vehicles and internal combustion. In cost and value, transport as a service is dramatically better, leading to a much faster disruption. There are much more powerful feedback loops here, and much greater gains for individuals and society that will accelerate it. All these will cause policy makers to enact new legislation that will accelerate the disruption. MR. ALSAADI: I have certainly seen pro-electric-vehicle analysts mention smartphones as a template for electric-vehicle growth, yet I don’t see how this is applicable to electric vehicles. Smartphones delivered a superior product with more functionality at a higher price point to existing Nokia phones at the time. Electric cars are offering an inferior product at a superior price point. This is a surefire formula for failure once subsidies are removed. If there is any disruption in 60 1 China WSJ: 1 China 197.9 2 Japan 42.9 2 U.S. 112.2 U.S. 42.4 3 India 75.9 4 Germany 41.1 4 Japan 72.5 5 Italy 19.0 5 Germany 53.6 6 U.K. 11.5 6 Italy 22.5 7 India 9.5 7 U.K. 15.8 8 France 7.1 8 France 15.2 9 Australia 5.8 9 Australia 13.6 Spain 5.5 10 South Korea 12.1 Note: Projections for 2021 are based on the middle of three scenarios. Source: SolarPower Europe the market, it’s disruption by pro-electric-vehicle regulation, since regulation is forcing electric vehicles on consumers at a great cost to taxpayers. I am not sure why it’s assumed that a transport-as-aservice fleet will be electric. Car 2 Go, one of the most successful car-sharing services in North America, eliminated many electric cars from its fleet in 2016 due to a number of issues, including lack of infrastructure. Regulation in countries such as China will have a meaningful impact on electric-vehicle adoption. Chinese electric-vehicle incentives have been subject to widespread abuse, thus forcing the country to cut electric-vehicle subsidies, which have had a notable impact on the electric-vehicle sales growth rate in 2017. Nawar, We’ve seen steady improvement in battery costs and electric-vehicle range. Does your timeline depend on those improvements slowing or coming to an end? MR. ALSAADI: I am taking into account the potential decline in battery cost. I am also assuming this will be offset to a large extent by subsidy elimination. As for electric-vehicle range, I do see improvement. However, internal-combustion cars’ efficiency will also improve during the same time frame, thus undermining to some extent cheaper electricity refueling cost. Finally, I think we need to U.S. from becoming totally dependent on imports to generate solar energy as this renewable fuel assumes a more important role in the country’s overall energy supply. Keep in mind that increased tariffs wouldn’t be permanent: Under U.S. law, relief can be provided for up to four years, with a possible extension for another four years, but whatever relief is granted must be phased out over time according to a preset schedule. While increasing tariffs on imports of solar cells and modules might reduce consumption somewhat in the U.S. from what might occur absent tariff relief, concerns on this score are almost certainly overblown. First, modules are a small part of the total cost of a solar installation. A Deutsche Bank Markets Research paper estimates modules at 12% of total installation costs. That means even hefty duties would have a relatively modest effect on the overall cost of solar power. Second, overall costs continue to fall, so that even with high tariffs on solar cells and modules, total costs likely would remain below 2016 levels—a year with the strongest growth in solar demand and installation in the U.S. At those prices, solar would remain competitive against alternatives like natural gas, which has seen a big increase in spot prices over the past two years. The danger that higher tariffs on solar cells and modules would prompt additional retaliatory Chinese tariffs on imports from the U.S. of the polysilicon that cells are made from is no reason not to proceed. The appropriate response to any Chinese action that violates international trade agreements is a legal challenge. Not acting because of such a threat is simply letting a bully prevail. The idea that economic efficiency dictates that the production of solar cells and modules should be left to China is similarly flawed. Chinese producers are lower-cost only because of massive state involvement. Given a level playing field, the U.S. should be able to compete across the board in solar energy. Tariffs are one way to level the playing field. NO They Level the Playing Field and Aid U.S. Manufacturers BY TERENCE P. STEWART THE U.S. SOLAR industry is in deep trouble, plagued by plant closings and bankruptcies that have sharply reduced manufacturing capacity. Without additional meaningful tariffs on imports of solar cells and modules, solar manufacturing is in danger of disappearing entirely in the U.S. That would undermine the country’s energy security and technological leadership, and eliminate jobs in the industry itself and far beyond it. If significant new tariffs are adopted, a host of benefits can be expected. First, solar cell and module manufacturers, and their suppliers, in the U.S. will revive, given the ability to once again sell their products at prices above costs. Foreign makers of solar cells and modules are also likely to set up manufacturing plants in the U.S. if the tariff is high enough to make production in this country economical for them, creating many new jobs here. And solar manufacturers in the U.S. will once again be able to make significant investments in research and development—something an industry in survival mode can’t do. The benefits wouldn’t be limited to the solar industry and its workers. A healthier, growing solar industry would increase tax revenue for local and state governments as well as the U.S. Treasury. It would also bring increased sales of goods and services of all kinds to the communities where manufacturing facilities are located, as solar workers spend their wages, and reduce costs to governments for benefits and services for the unemployed. Moreover, a viable domestic solar cell and module manufacturing sector would keep the Mr. Stewart is managing partner of the Stewart & Stewart law offices in Washington, D.C., with 38 years of experience in trade cases. Email him at email@example.com. 2021 77.9 3 10 in the U.S. to grow. But some critics say these tariffs would have an entirely different outcome, damaging the broader solar industry in the U.S. by raising prices for consumers and by encouraging the imposition of retaliatory tariffs abroad on U.S. solar products. manufacturer. President Trump has until January to decide whether to act on the commission’s recommendations, which also include import quotas and a licensing fee. Supporters say new tariffs on solar cells and modules are needed to save the remaining U.S. manufacturers and allow production THE WALL STREET JOURNAL. be cautious about the gospel of forever-lower battery prices. Potential bottlenecks are also appearing in regards to battery components, such as Volkswagen’s failure to secure sufficient cobalt supply for their electric-vehicle plans. These issues may be resolved or addressed at some point, but they could slow or reverse low battery-price trajectory for some time. MR. SEBA: Battery costs have been dropping faster than most analysts expected. Lithium costs have more than doubled, but lithium-ion battery costs have still dropped by about 20% a year since 2010, an even faster rate than before. Cobalt may become a bottleneck for those whose batteries use cobalt. But 80% of China’s EV batteries use no cobalt. And those who do use cobalt are learning to use it more efficiently. The increase in investments, R&D, learning curve, economies of scale, and so on will bring the cost of batteries dramatically down. MS. GORDON: Tony, how do you deal with culture? The bestselling vehicle in the world is the Ford F150 truck; it has been the best-selling in America for years. MR. SEBA: Electric vehicles are far more powerful than internal-combustion-engine vehicles (while being far cheaper to maintain and fuel). Whenever the market delivers an electric competitor to the F-150, it will disrupt that market. Trucking will likely un- FRED JOE/SOLARWORLD Last month, the U.S. International Trade Commission recommended that President Trump implement new tariffs on imported solar cells and modules. Cells are the components of solar modules, or panels, that produce electricity. The recommendation was made after two A robot helps produce solar panels in a SolarWorld Americas factory in Hillsboro, Ore. The company recently petitioned U.S. trade officials for tariffs on imported panels. dergo a faster disruption than cars. While many people associate trucking with long distance, more than half the freight in the U.S. is driven less than 100 miles, and 71% travels less than 250 miles. Electric trucks with 100mile range are approaching the upfront purchase price of their internal-combustion-engine peers. Given the order-of-magnitude savings in energy (and maintenance) of electric trucks vs. internal-combustion-engine trucks, these savings alone would justify a wholesale conversion of fleets. The electrictruck disruption of internalcombustion-engine trucks will start sooner and have a faster adoption curve than the mainstream anticipates. MS. GORDON: The point isn’t that electric vehicles are/can be stronger and more effective. It’s that there’s a cultural bias that plays into car ownership. People don’t always make ownership decisions rationally. I agree partially about larger vehicles. Fleet vehicles will transition sooner because they’re under the control of a single owner, usually turned over quickly and go short distances. I’m less confident about heavy-duty trucks, which may go to hydrogen or another technology rather than electric because of battery size/weight issues. Mr. Totty, a former news editor for The Journal Report in San Francisco, can be reached at firstname.lastname@example.org. Power Drive The number of electric cars world-wide 1,400 thousand Electric cars by country, 2016 (2 million total) 32% China 28 U.S. 1,200 1,000 800 600 Battery electric vehicles Japan Norway 7 Plug-in hybrids Netherlands 6 400 9.4 200 8 U.K. 4 France 4 Germany 4 1 Canada 0.04 0 2010 ’11 ’12 ’13 ’14 ’15 ’16 7 Other A Place to Plug In Publicly available charging stations by country, 2016 Public slow chargers (212,000 outlets total) 25% China 17 U.S. Japan 8 Germany 8 France 7 9% 5 Norway 3 Canada 2 Other China 81% 12 Netherlands U.K. Public fast chargers (110,000 outlets total) Other 13 Japan | 5% U.S. | 5% Source: International Energy Agency, Global EV Outlook 2017 THE WALL STREET JOURNAL.